You are here: Home - Uncategorized -

Companies told to prepare for reduced profits

Written by:

UK companies should avoid optimistic profit forecasts and prepare for profits to fall by 5% this year, according to Resolution Asset Management.

Peter Reid, UK chief investment officer at Resolution, warned that forecasts for profits remain too optimistic, and appear to ignore the potential imminence of a recession in the US.

Reid also pointed out that even aggressive interest rate cutting by the Bank of England would fail to correct problems in the UK’s economy.

He explained: “The consensus is for UK profits to grow 7-8% in 2008 but we don’t think this will be the case, especially given that profit margins are starting from a very high level already.

“In my view, profit expectations need to come down closer to flat year-on-year to reflect what will be a very difficult environment for firms over the next 18 months or so.”


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Lovers strapped for cash on Valentines Day

Nearly three million people are too broke to celebrate Valentines Day, according to price comparison site uSwitch.