You are here: Home - Uncategorized -

Small firms top UK profit warnings table

Written by:

The number of firms stating that their performance would fall short of forecasts decreased last year, according to figures released in a report on UK investment and business performance by Ernst & Young (E&Y).

Acording to E&Y, 342 companies listed on the London Stock Exchange issued profit warnings, compared to 381 in 2005. In 2006, 75% of firms issuing profit warnings had a turnover of under £200m, from 70% in 2005 and 67% in 2004.

The report said that the number of profit warnings issued last year was close to the number issued in 2002 “when economic conditions were far more testing” and UK investment in business was under more pressure.

Many of the smaller companies issuing profit warnings are listed on London’s junior stock market – AIM – and by 2006 AIM-listed companies comprised 54% of all profit warnings.

Andrew Wollaston, E&Y corporate restructuring partner, said: “The high incidence of profit warnings from AIM companies, especially in their first year of flotation, has increased scrutiny on the junior market as a prime focus of UK investment opportunity.

“With AIM becoming increasingly popular, there will be more competition for UK investment and therefore a greater need for companies to adopt better forecasting and investor relations,” he concluded.


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:
Average house price now ‘almost £200,000’

The Department for Communities and Local Government (DCLG) has said that house prices in the UK accelerated significantly at the...