Yorkshire and North East profit warnings remain static
Quoted companies located in Yorkshire and the North East issued ten profit warnings in the first quarter of 2019, which is the same as in the previous quarter, according to EY’s latest Profit Warnings Report.
The number of warnings issued by plcs in the region have remained steady in the last 12 months, between nine and ten issued in each quarter, but remain at a relatively high level.
Profit alerts have hit double figures in the first quarter of the year four times in the last decade – in 2009 (19), 2014 (10), 2018 (10) and 2019 (10).
The ten profit warnings recorded in Yorkshire and the North East in Q1 2019 were spread across six sectors, including Support Services, Travel & Leisure, and Personal Goods.
Hunter Kelly, EY’s Head of Restructuring for Yorkshire and the North East, said: “Protracted uncertainty is taking its toll on the UK and has impacted on consumer, investor and business confidence for a good while now. The ‘no deal Brexit’ countdown was especially disruptive for businesses as they focused on how to deal with the likely supply chain and regulation issues that would arise.
“However, it is hard to split out the impact of Brexit stresses from mounting global trade and growth concerns, including the recent weakening of the global economic outlook, and rising concerns over China’s trade relations with the rest of the world.”
Hunter added: “Restructuring may provide some breathing space, but for some retailers it is more fundamental and the core offering no longer has the appeal at a price that will consistently deliver profits. The structural and cost issues within the sector are very difficult to deal with. Online growth and development is relentless and consumers are still reluctant to pay full-price.”