Profit warnings highest since 2001

Kashflow logo
Share this content

Last year saw steep rise in the number of profit warnings issued by UK companies, giving the highest annual total since 2001, says a report from Ernst & Young.

Some 381 profit warnings were issued in 2005, compared to 294 in 2004 - a rise of 23%. The main reasons given by companies were sales which fell short of forecasts, difficult trading and market conditions, and increasing costs.

The 23% increase in profit warnings is largely down to the collapse in consumer confidence, triggered by high debt levels and a slowing housing market,and because UK economic growth halved to 1.6%, the lowest annual rate since 1993, said Andrew Wollaston, Partner at Ernst & Young.

"Whilst there appears to be the beginnings of a recovery in the housing market and more positive news of Christmas trading from retai...

Please Login or Register to read the full article

The full article is available to registered members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.


Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.