EY warns against complacency as North West profit warnings dip

Profit warnings in the North West dipped during the last three months, according to new data.

Just four companies in the region issued profit warnings in the third quarter of 2017, compared with 11 in Q2 and 10 in Q1.

Despite the positive findings in the latest Profit Warnings report from EY, the professional services giant warned against ‘complacency’ as firms find their footing over the coming quarter.

The findings in the North West were against the national grain with 75 warnings issued UK wide in Q3, a like-for-like increase of 67%.

The figure, EY said, is significantly higher than the number of warnings typically seen during the third quarter (62).

The FTSE sectors to see the highest number of profit warnings were Support Services with 13, General Retailers with eight, Software & Computer Services at five, and Travel & Leisure, also with five.

EY’s head of restructuring in the North West, Sam Woodward, said: “The low level of profit warnings in Q3 across the North West should not lead to complacency.

“For UK plc generally, summer brought more mixed fortunes, with the contrast between accelerating overseas markets and the slowing UK economy increasing.”

He added: “Many businesses besieged by pricing pressures before Brexit are also now feeling the brunt of rising domestic uncertainty and rising costs.”