Analysis of UK Profit Warnings: Sector Insights
Every quarter, we provide the latest sector insights from our Profit Warnings analysis, delving deep into two specific sectors and the challenges facing companies and stakeholders alike.
For Q3 2020, we look at the FTSE Travel and Leisure sector as well as the FTSE Construction and Materials sector, analysing the headwinds facing both.
A sector-wide challenge
Three quarters of the FTSE Travel and Leisure sector have issued a profit warning in the first nine months of 2020. The total of 63 warnings is by far the highest of any FTSE sector and reflects the widespread impact of current restrictions and fundamental changes in consumer behaviour.
Businesses need to be able to adapt and position themselves for further uncertainty and change. Many will face tough choices.
Supply chain pressure
FTSE Construction and Materials companies issued a record 28 profit warnings in the first nine months of 2020. Almost 60% of the sector has warned this year, with most warnings coming from the building materials sub-sector.
There isn’t just one COVID-19 story in construction
COVID-19’s impact will continue to evolve as companies adapt to new ways of working and pipelines reflect new priorities.