Add insight with our Profit Warnings Console
Our Profit Warnings Console provides you with access to twelve years’ worth of data at the click of a button. Using the console, you can analyse warnings to identify the forces affecting your market to shape your path ahead.
What is a profit warning?
A profit warning is an official statement to the stock exchange from a publically listed company that says that it will report full-year profits materially below management or market expectations.
EY’s Quarterly Analysis of Profit Warnings tracks profit warnings from UK registered companies listed on the UK’s Main Market or AIM.
Q2 2018 Headlines
UK profit warnings hit 58 in the second quarter of 2018, pushing our EY Profit Warning Stress Index up to its joint-highest total for six quarters.
Consumer-facing sectors lead the rise in profit warnings. Warnings from quoted retailers reached 25 in the first half of 2018, compared with ten in the same period of 2017.
Nonetheless, there is the potential for a rise in stress outside of the consumer sphere, as uncertainty increasingly delays decision making on contracts and investments.
The increased market reaction to profit warnings suggests that investors are treating fewer warnings as one-offs as economic and political risks multiply.
29% increase in profit warnings year-on-year
7 year high in FTSE General Retailers’ warnings in H1 2018
29% of warnings blame delayed or cancelled contracts
15.9% median share price fall is the highest since Q2 2016
FTSE General Retailers
Profit warnings from FTSE General Retailers reached a seven-year high in H1 2018 as the retail revolution continues.
FTSE Construction & Materials
With uncertainty rising and the outlook in question, it’s time for the FTSE Construction & Materials sector to take stock.
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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, trustees and regulators) on how best to protect, improve and recover value. Alan was an appointment taker in relation to, amongst others, 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.