Profit warnings rocketed in region over last quarter, says EY
PROFIT warnings rocketed in Yorkshire and the North East over the last quarter.
A total of 14 profit warnings were issued by listed businesses across the Yorkshire and North East in the third quarter of 2017, up from five in the second quarter and eight in the same period last year, according to EY’s Profit Warnings report.
EY said the increase reflects a national trend that shows a growing divergence between sectors of the UK economy more exposed to domestic pressures and those benefiting from growth in overseas markets.
The increase from the seven year low recorded in the previous quarter reflects the unpredictable economic climate, according to EY’s latest Profit Warnings report.
Hunter Kelly, EY’s head of restructuring for Yorkshire and the North East, said: “Summer brought more mixed fortunes for listed businesses across Yorkshire and the North East, with the contrast between growth from overseas markets and the slowing UK economy increasing.
“Many businesses besieged by pricing pressures before Brexit, are also now feeling the effects of rising domestic uncertainty and rising costs. A rise in multiple warnings reflects the difficulties in predicting what the trends are in such an uncertain economic climate, for example, will the Bank of England raise interest rates?”
“The warnings were due to a number of reasons, from contract delays to pricing and cost pressures, to lower demand from UK consumers.
“Not all companies in the same sector have faced the same issues, which highlights the difficulties in determining whether there is an overall trend.”