- FTSE Construction & Materials
FTSE Construction & Materials companies issued six warnings in Q2 2019 and 11 profit warnings in H1 2019, the highest first half total since 1999.
This exceptionally high total of profit warnings reflects the impact of uncertainty and hiatus, but it’s important that the construction sector also addresses the structural weaknesses that have left it vulnerable to adverse events.
More challenges to come
FTSE Construction & Materials companies issued the highest number of first half profit warnings since 1999, as the sector contends with increasing cancellations and delays to new contracts.
- FTSE Chemicals
FTSE Chemicals companies issued six profit warnings in Q2 2019, with 27% of the sector warning in just this quarter alone.
This is a record level of warnings, beyond the figures we saw in 2008 or 2001. It’s the unique combination of economic, geopolitical, regulatory and environmental factors – combined with chemical companies’ positions in long-term global supply chains – that is making 2019 so hazardous.
Focus on operational and financial flexibility
FTSE Chemicals companies issued six profit warnings in Q2 2019, the highest quarterly total since 2001. UK chemical companies’ position in long-term supply chains leaves it especially vulnerable in the current environment.
UK&I Head of Restructuring
Partner, UK&I Restructuring
Partner, UK&I Restructuring
Market Analyst and Author
Alan leads our UK & Ireland Restructuring practice. He joined EY in 1985 and has more than 30 years’ experience working across the restructuring, accelerated M&A, advisory and insolvency arena in a number of industries advising stakeholders (boards, corporates, investors, lenders, Governments and regulators) on how best to protect, improve and recover value. Alan was an appointment taker in relation to, amongst others, Interserve, House Of Fraser, Mid Staffordshire NHS Foundation Trust, Focus DIY, Dreams, Orchid Pub Group, Battersea Power Station, White Tower, Dunedin Industrious, DTZ plc, Navan Mining and Luminar nightclubs. He is a member of the editorial board of the Association of Business Recovery Professionals’ (R3) Recovery magazine and is a former member of R3’s Council. He has worked across a variety of geographies and sectors with a particular focus on Consumer Products & Retail, Health / Government & Public Sector, Real Estate, Construction, Support Services and Transportation.
Jon leads EY’s Cash and Working Capital team in the UK and across EMEIA, bringing liquidity solutions to both corporate and private equity clients. Since 1995 he has specialised in helping businesses transform cash forecasting and working capital performance and sustainably build liquidity against urgent deadlines. Jon has extensive experience working with some of the world’s largest businesses across many sectors, including Industrials, Consumer Products and Telecoms.
Lee is a restructuring specialist with over 20 years’ experience advising both lenders and corporates through multi-stakeholder restructuring situations in both public and leveraged finance markets. He has worked across a wide range of sectors, including Banking & Capital Markets, Oil & Gas, Power & Utilities, Consumer Products & Retail, and Telecoms. He has extensive experience helping formulate and implement financial restructuring programmes.
Kirsten is the lead author in our UK&I Transaction Advisory Services practice. She has more than 20 years’ experience of originating and presenting market analysis and insight in a wide variety of formats, from thought leadership to blogs. Kirsten is the lead editor of EY’s Capital Agenda Blog and the lead data analyst and author of EY’s Quarterly Analysis of Profit Warnings.