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.
Q4 2018 Headlines
UK quoted companies issued 88 profit warnings in the fourth quarter of 2018. In 2018, one in six UK quoted companies issued a profit warning, the second highest level since 2008.
This rise is driven by ‘new’ profit warnings from companies who hadn’t warned in the last year. Uncertainty is compounding structural pressures, hurting confidence, delaying spending and spreading pressure into new areas of the economy.
Investors, like many businesses, are positioning for the worst – which could provide some upside to 2019. But most scenarios leave us facing further political and economic uncertainty and no let-up in the pace of structural change.
4% rise in profit warnings year-on-year
10-year high in percentage of retailers warning
31% of Q4 profit warnings blame contract disruption
22.6% is the highest average share price fall recorded
FTSE General Retailers
The FTSE General Retailers sector issued eight profit warnings in Q4 2018, taking the annual total to 36 – a 50% annual increase.
FTSE Real Estate
The toughest year on the high street in a decade made 2018 the ‘year of the CVA’, turning the spotlight on retail landlords.
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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.