The number of profit warnings issued by PLCs in Yorkshire and the North East fell in the first three months of 2016 to the lowest first quarter total since the global recession in 2008.
According to EY’s latest Profit Warnings report, quoted companies in the region issued five profit warnings in the first quarter of 2016, compared with six in Q1 2015 and ten in Q1 2014.
Profit warnings in Yorkshire and the North East reached a three year high in 2014 but have been steadily dropping since.
In comparison UK quoted companies issued 76 profit warnings in the first quarter of this year, 24 fewer than the previous quarter.
Hunter Kelly, restructuring partner at EY in Yorkshire and the North East, said: “These results for Yorkshire and the North East suggest that in comparison with 2015 Yorkshire and North East PLCs are perhaps adapting better to the increased volatility of the last few years.
“However, it’s still a tough environment in which to plan and forecast and political factors such as Brexit and Global dynamics hasn’t increased predictability for many factors, including currency movements or competitor pricing activity.
“There are clear advantages for firms that can demonstrate market understanding and the business resilience necessary to match an unpredictable world.”
According to the professional services firm’s latest Profit Warnings report, the level of warnings in the UK was higher than expected, especially given the substantial downgrade in profit expectations at the end of 2015.
The FTSE sectors issuing profit warnings in Yorkshire and the North East included industrial engineering, pharmaceuticals and biotechnology, general financial and support services.