Profit warnings at FTSE listed companies soar to crisis levels

 
Michael Bow
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Profit warnings from UK-listed corporates hit a six-year high last year, despite stronger economic growth across the country.

FTSE-listed firms issued 299 profit warnings last year up from 255 in 2013. The figure is the highest since the peak of the financial crisis in 2008.

A fifth of the warnings were sparked by contract delays or cancellation of payments, according to the figures, published by EY yesterday,

“The six-year high in the number of profit warnings appears incongruous given that UK and global economic outlooks still signal growth, but increasing political, policy and pricing uncertainties conspired to hit confidence at the end of 2014,” the firm’s head of restructuring for UK & Ireland Alan Hudson said.

The support services sector was the worst offender, with 47 profit warnings. The software and computer services sector and media sector also contributed with 28 and 16 warnings respectively.