20th anniversary of EY's Profit Warning Analysis

EY began analysing UK profit warnings in 1999. Since then, we’ve published 80 quarterly reports telling UK plc’s story through twenty years of economic flux.

To mark this anniversary, we’ve taken a deeper look into this powerful dataset. We’ve explored the trends behind two decades of UK profit warnings and undertaken a special analysis of companies that have issued ‘multiple profit warnings’ – three or more warnings within a year – looking at how their fate has changed over time.

As capital moves with increasing pace, it is more important than ever that we understand the triggers behind profit warnings and how companies can build resilience and reshape their future in this unpredictable world.

Highlights

20th-anniversary-profit-warnings-hightlight
Over 6,000 profit warnings from more than 2,000 companies have provided EY with powerful insight into business, capital and economic trends. Steve Ivermee, Transaction Advisory Services Leader, EY, UK and Ireland
Steve Ivermee
EY UK & Ireland Transaction Advisory Services Leader

Key considerations

What can we learn from over 6,000 profit warnings from more than 2,000 companies across 20 years?

1. No sector is immune from profit warnings, but retailers and contractors are most at risk


Have you identified the business-critical risks in your sector?
2. Since 2016, the median gap between a company's third warning and a restructuring event has shrunk to 91 days

How quickly can you respond to adversity?
3. The third profit warning is a knockout blow for one in five companies



Can you reshape your future in time to stop a profit warning chain reaction?

What can 20 years of profit warning data tell us?

Read Alan Hudson's blog to find out more

Latest Insights

Alan Hudson examines the increasing speed of investor reaction to profit warnings.
Lisa Ashe explains why the third profit warning is often the knock-out blow.
Mona Bitar explores why some sectors are more vulnerable to profit warnings.