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28/01/2002
Profit warnings rise to all-time high
A record number of UK companies issued profit warnings in 2001, according to new research from accountancy firm, Ernst & Young.
The fourth quarter saw 49 firms issuing profit warnings, an increase of 10 per cent on the previous three-month period, and representing a record high for any year since records began.
Taking 2001 into account as a whole, there were a total of 520 warnings, an increase of more than 100 per cent on the previous year, with the IT industry issuing the most, especially in the fourth quarter.
It has been estimated that around 40 per cent of the warnings have occurred either as a direct result of September 11 or as part of the financial aftermath.
Alan Bloom, head of corporate restructuring at Ernst & Young, warned: “In the uncertain atmosphere that will dominate the next few quarters, there will be extreme pressure on profit margins. Sales and prices will continue to remain stagnant or decline whilst fixed costs such as wages continue to rise.” (CL)
The fourth quarter saw 49 firms issuing profit warnings, an increase of 10 per cent on the previous three-month period, and representing a record high for any year since records began.
Taking 2001 into account as a whole, there were a total of 520 warnings, an increase of more than 100 per cent on the previous year, with the IT industry issuing the most, especially in the fourth quarter.
It has been estimated that around 40 per cent of the warnings have occurred either as a direct result of September 11 or as part of the financial aftermath.
Alan Bloom, head of corporate restructuring at Ernst & Young, warned: “In the uncertain atmosphere that will dominate the next few quarters, there will be extreme pressure on profit margins. Sales and prices will continue to remain stagnant or decline whilst fixed costs such as wages continue to rise.” (CL)
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29 October 2001
UK firms urged to plan for the worst
Accountancy firm Ernst & Young has urged executives to plan for lay-offs and asset sales, after finding a record level of profits warnings issued by firms in the UK.
UK firms urged to plan for the worst
Accountancy firm Ernst & Young has urged executives to plan for lay-offs and asset sales, after finding a record level of profits warnings issued by firms in the UK.
27 August 2001
Profit warnings issued by companies quadruple
The number of UK firms issuing profits warnings has more than quadrupled during the first six months of the year. According to a recent report by business information service Hemscott, 325 listed UK firms have told investors that earnings would not be as high as previously expected. This compares with 89 in the same period last year.
Profit warnings issued by companies quadruple
The number of UK firms issuing profits warnings has more than quadrupled during the first six months of the year. According to a recent report by business information service Hemscott, 325 listed UK firms have told investors that earnings would not be as high as previously expected. This compares with 89 in the same period last year.
26 July 2001
Union issues warnings over BT profit loss
Despite making some headway in reducing its amount of debt, British Telecommunications (BT) has revealed yet another quarterly drop in profits. Announcing figures for the second quarter, Chairman Christopher Bland said that BT had succeeded in reducing debt from the “unsustainable” level of almost £28 billion, as recorded in March of this year.
Union issues warnings over BT profit loss
Despite making some headway in reducing its amount of debt, British Telecommunications (BT) has revealed yet another quarterly drop in profits. Announcing figures for the second quarter, Chairman Christopher Bland said that BT had succeeded in reducing debt from the “unsustainable” level of almost £28 billion, as recorded in March of this year.
13 November 2002
Pre-tax profit hike for Viridian Group
The Viridian Group has reported a £3.1 million increase in pre-tax half-year profits. The figures, released on Tuesday, revealed that for the six months up to the end of September, the company posted a pre-tax profit hike of £29.8 million compared to £26.7 million for the same period last year. While turnover increased from £305.3 million to £331.
Pre-tax profit hike for Viridian Group
The Viridian Group has reported a £3.1 million increase in pre-tax half-year profits. The figures, released on Tuesday, revealed that for the six months up to the end of September, the company posted a pre-tax profit hike of £29.8 million compared to £26.7 million for the same period last year. While turnover increased from £305.3 million to £331.
02 August 2001
Shell posts record $7.4 bn profit for first half of year
Royal Dutch/Shell has announced record £7.4 billion (£5.2 billion) profits for the first half of the year, the figures revealing a jump in profits of 15 per cent on last year’s results.
Shell posts record $7.4 bn profit for first half of year
Royal Dutch/Shell has announced record £7.4 billion (£5.2 billion) profits for the first half of the year, the figures revealing a jump in profits of 15 per cent on last year’s results.
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