Adapting to a Different Normal

EY's latest analysis of profit warnings in the UK shows that even as the economy emerges from lockdown it remains a highly uncertain and testing time for businesses, many of which are adjusting to new ways of working and lower levels of demand. Companies also face ongoing uncertainties beyond the COVID-19 pandemic, not least Brexit.

• 165 profit warnings were issued in Q2 2020, a 139 percent increase compared to Q2 2019
• 42 percent of FTSE 350 companies have withdrawn earnings guidance due to ongoing uncertainties
• FTSE Oil, Gas and Coal sector issued 10 profit warnings in Q2 2020, the largest number since Q1 2015, as the sector faced a sharp drop in oil prices and in demand
• FTSE Media sector issued 11 profit warnings in Q2 2020, reaching a record high in 2020, as a result of falling advertising spend and trade event cancellations.