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29/10/2001
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.
Ernst & Young’s latest quarterly report, Analysis of Profit Warnings, showed that profit warnings had risen 35 per cent on last quarter, and Ernst & Young urged UK companies to “hold their nerve and manage for cash”.
E&Y cautioned businesses against complacency, warning that it was too risky to wait for sales to improve without also taking remedial action.
"You may never need to implement these options," Andrew Wollaston, E&Y senior partner, said. "But planning for them now will give you the flexibility to implement them quickly and effectively if you need to."
The stark warning followed the firm's finding that the number of profits warnings issued by UK companies hit 135 in the July to September quarter, reaching the highest since records began four years ago.
Software and computer services firms were among the worst hit sectors, accounting for 20 per cent of the warnings issued.
E&Y joined other observes in crediting resilient consumer confidence for keeping the UK from recession, but Mr Wollaston urged executives to keep a cool ahead, and anticipate a worsening economic scenario: "Whatever the length of the current downturn there will be an upturn - no matter how distant it seems on the horizon.
"Companies must manage their businesses very tightly over the next few months if they are to be best-placed to take advantage of opportunities that will arise when the upturn comes." (MB/SP)
Ernst & Young’s latest quarterly report, Analysis of Profit Warnings, showed that profit warnings had risen 35 per cent on last quarter, and Ernst & Young urged UK companies to “hold their nerve and manage for cash”.
E&Y cautioned businesses against complacency, warning that it was too risky to wait for sales to improve without also taking remedial action.
"You may never need to implement these options," Andrew Wollaston, E&Y senior partner, said. "But planning for them now will give you the flexibility to implement them quickly and effectively if you need to."
The stark warning followed the firm's finding that the number of profits warnings issued by UK companies hit 135 in the July to September quarter, reaching the highest since records began four years ago.
Software and computer services firms were among the worst hit sectors, accounting for 20 per cent of the warnings issued.
E&Y joined other observes in crediting resilient consumer confidence for keeping the UK from recession, but Mr Wollaston urged executives to keep a cool ahead, and anticipate a worsening economic scenario: "Whatever the length of the current downturn there will be an upturn - no matter how distant it seems on the horizon.
"Companies must manage their businesses very tightly over the next few months if they are to be best-placed to take advantage of opportunities that will arise when the upturn comes." (MB/SP)
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Profit warnings issued by companies quadruple
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Analysts concerns grow over continued profits warnings
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Innovation & Outreach Fund Open For Applications
A £30,000 Innovation and Outreach Fund to encourage the use of open data has opened for applications. Awards of between £300 and £5,000 are available to fund the development of apps or other interactive visualisations that make innovative use of data on the Open Data NI portal.
Innovation & Outreach Fund Open For Applications
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