Yorkshire profit warnings rise despite a more positive UK outlook
Profit warnings from listed businesses in Yorkshire increased by 75% (three) in the third quarter of this year, in contrast to a more positive UK picture, according to EY’s latest Profit Warnings report.
Seven warnings were made in the region between July and September 2013 - the highest number recorded in a third quarter in five years - compared to four in Q2 and ten in Q1.
Sectors to issue warnings in Yorkshire in Q3 included: support services (3); alternative energy (1); electronic & electrical equipment (1); food & drug retailing (1); and general financial (1).
By comparison, the number of warnings issued by UK listed businesses rose by just 3% in the third quarter - 56 from 54 in Q2. However, there was a sting in the tail for UK plc with a late spike in warnings in September (26) – the highest level seen in this particular month since the height of the financial crisis in 2008.
Hunter Kelly, Yorkshire restructuring partner at EY, said: “Overall the economic outlook is still improving and perhaps there is a sense that we’re moving onto the next stage of the recovery, where growth may come at the expense of 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 false assumptions as to the path of that growth will quickly reflect in forecasts.”
EY’s senior partner, David Buckley, recently described Yorkshire as “a hive of entrepreneurial talent that contributes greatly to national economic success.”
This was posted in Bdaily's Members' News section by David Gatehouse .
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