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.
Key findings include:
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42 percent of FTSE 350 companies have withdrawn earnings guidance due to ongoing uncertainties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.
Other Insights Contributed by EY, More London Place: