UK PROFIT WARNINGS have hit a three-year high after more than 100 warnings were issued in the first half of 2014, according to a new report.
Figures from EY show 137 firms, such as retailers Mothercare and Mulberry, and outsourcing company Serco, have issued profit warnings this year, Investment Week reported.
Last week, supermarket giant Tesco issued a profit warning following poor sales which led to the departure of chief executive Philip Clarke.
The total figure is up 9% year-on-year and the highest figure since the first half of 2011.
Reasons given by firms included competitive pressures, strong sterling, and squeezed margins.
Consumer goods manufacturers were the most likely to struggle, the report found, with 16% of firms issuing warnings, almost double the amount in 2013.
This pressure on firms comes despite GDP figures showing the UK economy has returned to its pre-crisis strength, posting GDP growth of 0.8% for the second quarter of 2014.
Sign up for Financial Director email alerts
Please enter your email below to receive your profile link
Search by job title, salary, or location - we only list senior financial roles
Our panel of experts explore the major pension pain points and discuss what actions finance professionals should be taking in order to alleviate them
The first CFO Agenda, hosted by Financial Director at the Royal Society of Arts, was a roaring success
Corporate failures can almost always be traced back to a failure of corporate culture. But how do you assess culture? asks Richard Crump
Send to a friend