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 the companies and stakeholders alike.
For Q1 2020, we look at the FTSE Travel and Leisure sector as well as the FTSE Real Estate sector, analysing the headwinds facing both.
An exceptional challenge
The nature of the Travel & Leisure sector means it was hit hardest and fastest by the necessary actions designed to limit the spread of COVID-19.
A long-term challenge
“Companies in the sector have acted quickly to mothball operations, conserve cash and access government support. But the challenge doesn’t end when lockdown lifts.”
The impact of COVID-19 has significantly amplified existing stresses on the real estate sector– and added new ones.
Accelerated structural change
“Most REIT profit warnings have unsurprisingly come from companies exposed to the travel, retail and leisure sectors – where we’ve also recorded the largest drop in rent collections.”