Listed firms issued 73 profit warnings in the final three months of 2016, up from 68 in the previous three quarters.
Another 27 have issued warnings in January, including major businesses such as BT, Pearson, Mitie and Premier Foods
Analysts at EY believe this could be a sign the period of steady corporate performance may be nearing an end.
“A strong end to 2016 represents the calm before the storm. The headline numbers show the UK economy weathering the initial impact of the Brexit vote remarkably well. But, we expect 2017 to be a very different year and for many companies a much tougher one,” said Alan Hudson, EY’s head of restructuring for UK and Ireland.
“There is a gap between winners and losers, one which in many cases predates the Brexit vote and stems from ongoing structural weaknesses that will leave companies exposed to the significant changes and new challenges that lie ahead.”
That includes a disparity between companies which suffer from the fall in the pound and those which benefit from a weaker sterling.
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“A strong end to 2016 represents the calm before the storm. The headline numbers show the UK economy weathering the initial impact of the Brexit vote remarkably well. But, we expect 2017 to be a very different year and for many companies a much tougher one,” said Alan Hudson, EY’s head of restructuring for UK and Ireland.
“There is a gap between winners and losers, one which in many cases predates the Brexit vote and stems from ongoing structural weaknesses that will leave companies exposed to the significant changes and new challenges that lie ahead.”
That includes a disparity between companies which suffer from the fall in the pound and those which benefit from a weaker sterling.
Read more
