North West profits warnings hit two-year low
PROFIT warnings from listed businesses in the North West halved in the third quarter of 2013, according to figures from EY.
Its latest Profit Warnings report shows there were two between July and September 2013 compared to 10 in the first quarter and four in the second.
The accountancy firm said the third quarter figure had not been so low since 2011.
The North West recorded the lowest number of warnings out of seven UK regions, behind Scotland & Northern Ireland (3); South West & Wales (5); and Yorkshire & North East (7). London topped the table with 19 warnings, followed by the South East (10), and Midlands & East Anglia (10).
The number of warnings issued by UK listed businesses in the third quarter rose by just 3% – 56 from 54 in Q2 2013. However, there was a late spike in warnings in September (26) – the highest level seen in this month since the financial crisis in 2008.
Tom Jack, North West restructuring partner at EY, said: “Overall the economic outlook is still improving, but expectations have dipped. There is a sense that we’re moving onto the next stage of the recovery, where growth will be more vital to profits.
“In the last few years, companies used a mixture of cost cutting and operational improvements to boost earnings, but now we’re seeing a combination of deep operational restructuring – including strategic divestments – coupled with economic growth. However, any doubts as to the path of that growth will quickly reflect in forecasts.”
