The better the question. The better the answer. The better the world works. У вас есть вопрос? У нас есть ответ. Решая сложные задачи бизнеса, мы улучшаем мир. У вас є запитання? У нас є відповідь. Вирішуючи складні завдання бізнесу, ми змінюємо світ на краще. Meilleure la question, meilleure la réponse. Pour un monde meilleur. 問題越好。答案越好。商業世界越美好。 问题越好。答案越好。商业世界越美好。

 

  • General retailers

    Underlying pressures remain

    FTSE General Retailers issued 12 profit warnings in Q1 2019, one fewer than the same quarter of 2018. In the last 12 months, 34% of the sector has issued a profit warning, slightly less than the 41% warning in the year to Q1 2018.

    It may be that we’ve seen the peak of retail warnings in this cycle. Improving disposable incomes and restructuring may provide some breathing space. Nevertheless, the sector is still contending with the same underlying pressures that make it hard to translate sales into profits - from rapid structural change to relentless price pressure.

     

    More challenges to come in 2019

    We may have seen the peak of retail profit warnings in this cycle. But retailers that fail to adapt to changing market dynamics will soon hit trouble again, as Martin Carr discusses in his review of sector profit warnings.

  • Financial Services

    Rising pressure

    FTSE Financial Services companies issued 10 profit warnings in Q1 2019, equalling 2018’s total in just one quarter. Of the 19 sector profit warnings issued in in the last 12 months, more than half have come from the Investment Services subsector.

    When the political backdrop becomes this unpredictable, investors are more likely to stay on the side-lines, with the lack of activity lowering fees. Beyond the impact of Brexit and geopolitical uncertainty, the sector is also dealing with technological disruption, new entrants, rising overheads, and changes to the regulatory landscape - with a knock-on impact on income and the compliance complexity.

     

    Unpredictability amplifies sector challenges

    This is a robust sector that is used to adapting to changing circumstances. But, the outlook for financial services remains challenging, as Kevin Gill explores in his review of sector profit warnings.

Contact us:

Alan Hudson

UK&I Head of Restructuring

Jon Morris

Partner, UK&I Restructuring

Lee Watson

Partner, UK&I Restructuring

Kirsten Tompkins

Market Analyst and Author