THE number of profit warnings issued by PLCs in Yorkshire and the North East fell in the first three months of 2015 to the lowest first quarter total since 2010, according to EY’s latest Profit Warnings report.
Quoted companies in the region issued six profit warnings in the first quarter of 2015, compared with nine in the first quarter of 2013 and 10 in the first quarter of 2014. This comes after warnings in Yorkshire and the North East reached a three year high in 2014.
There were seven profit warnings in the region in the first quarter of 2014.
In comparison UK quoted companies issued 77 profit warnings in the first quarter of 2015, three more than the same period of 2014, but 16 fewer than the previous quarter.
This level of warnings was higher than expected, especially given the much improved economic outlook and the significant adjustment to forecasts at the end of 2014 – when UK profit warnings hit a six-year high.
Hunter Kelly, restructuring partner at EY in Yorkshire and the North East, said: “These results for Yorkshire and the North East suggest that PLCs had a more stable start to this year than previous years.
“However, it’s still a tough environment in which to plan and forecast. The recovery hasn’t increased predictability for many factors, including currency movements or competitor pricing activity.”
EY expects the number of UK profit warnings to fall in future, but not by as much as seen in previous economic cycles.
“Even in the absence of a major shock, there is still geopolitical uncertainty,” said Mr Kelly.
“Speculation over the timing of US tightening and diverging policies elsewhere will keep markets volatile.
“Companies must continue to build capital, market, operational and stakeholder resilience and to ensure they can cope with markets turning out to be different than expected.”