Menu
29/10/2001
UK firms urged to plan for the worst
Accountancy firm Ernst & Young has urged executives to plan for lay-offs and asset sales, after finding a record level of profits warnings issued by firms in the UK.
Ernst & Young’s latest quarterly report, Analysis of Profit Warnings, showed that profit warnings had risen 35 per cent on last quarter, and Ernst & Young urged UK companies to “hold their nerve and manage for cash”.
E&Y cautioned businesses against complacency, warning that it was too risky to wait for sales to improve without also taking remedial action.
"You may never need to implement these options," Andrew Wollaston, E&Y senior partner, said. "But planning for them now will give you the flexibility to implement them quickly and effectively if you need to."
The stark warning followed the firm's finding that the number of profits warnings issued by UK companies hit 135 in the July to September quarter, reaching the highest since records began four years ago.
Software and computer services firms were among the worst hit sectors, accounting for 20 per cent of the warnings issued.
E&Y joined other observes in crediting resilient consumer confidence for keeping the UK from recession, but Mr Wollaston urged executives to keep a cool ahead, and anticipate a worsening economic scenario: "Whatever the length of the current downturn there will be an upturn - no matter how distant it seems on the horizon.
"Companies must manage their businesses very tightly over the next few months if they are to be best-placed to take advantage of opportunities that will arise when the upturn comes." (MB/SP)
Ernst & Young’s latest quarterly report, Analysis of Profit Warnings, showed that profit warnings had risen 35 per cent on last quarter, and Ernst & Young urged UK companies to “hold their nerve and manage for cash”.
E&Y cautioned businesses against complacency, warning that it was too risky to wait for sales to improve without also taking remedial action.
"You may never need to implement these options," Andrew Wollaston, E&Y senior partner, said. "But planning for them now will give you the flexibility to implement them quickly and effectively if you need to."
The stark warning followed the firm's finding that the number of profits warnings issued by UK companies hit 135 in the July to September quarter, reaching the highest since records began four years ago.
Software and computer services firms were among the worst hit sectors, accounting for 20 per cent of the warnings issued.
E&Y joined other observes in crediting resilient consumer confidence for keeping the UK from recession, but Mr Wollaston urged executives to keep a cool ahead, and anticipate a worsening economic scenario: "Whatever the length of the current downturn there will be an upturn - no matter how distant it seems on the horizon.
"Companies must manage their businesses very tightly over the next few months if they are to be best-placed to take advantage of opportunities that will arise when the upturn comes." (MB/SP)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
27 August 2001
Profit warnings issued by companies quadruple
The number of UK firms issuing profits warnings has more than quadrupled during the first six months of the year. According to a recent report by business information service Hemscott, 325 listed UK firms have told investors that earnings would not be as high as previously expected. This compares with 89 in the same period last year.
Profit warnings issued by companies quadruple
The number of UK firms issuing profits warnings has more than quadrupled during the first six months of the year. According to a recent report by business information service Hemscott, 325 listed UK firms have told investors that earnings would not be as high as previously expected. This compares with 89 in the same period last year.
30 July 2001
Analysts concerns grow over continued profits warnings
Business consultants Ernst & Young have warned that many UK managers may not be coping properly with the current downturn in the UK economy. The top business consultancy has expressed concern that UK managers are likely to be faced with further profit warnings in the third quarter of the year.
Analysts concerns grow over continued profits warnings
Business consultants Ernst & Young have warned that many UK managers may not be coping properly with the current downturn in the UK economy. The top business consultancy has expressed concern that UK managers are likely to be faced with further profit warnings in the third quarter of the year.
11 October 2001
Manufacturing sector in ‘critical condition’
The UK manufacturing sector is in a critical condition, with firms reporting huge export losses, declining home sales and a fall-off in orders.
Manufacturing sector in ‘critical condition’
The UK manufacturing sector is in a critical condition, with firms reporting huge export losses, declining home sales and a fall-off in orders.
05 August 2002
Small Firms Association warns of bleak future
The latest report from the Small Firms Association (SFA) has painted a bleak picture of the country's economic outlook. In its report the SFA warned Ireland was in danger of losing its competitive position and that the situation was deteriorating rapidly.
Small Firms Association warns of bleak future
The latest report from the Small Firms Association (SFA) has painted a bleak picture of the country's economic outlook. In its report the SFA warned Ireland was in danger of losing its competitive position and that the situation was deteriorating rapidly.
24 January 2002
Mobile phone sector looks set to profit in 2002
Finnish mobile phone giant Nokia has reported better then anticipated profits for the fourth quarter, defying predictions of a downturn in performance in the telecoms sector. The firm revealed earnings of £1.01 billion (1.63bn euros) before tax and one-off charges, a figure that was down on the 1.
Mobile phone sector looks set to profit in 2002
Finnish mobile phone giant Nokia has reported better then anticipated profits for the fourth quarter, defying predictions of a downturn in performance in the telecoms sector. The firm revealed earnings of £1.01 billion (1.63bn euros) before tax and one-off charges, a figure that was down on the 1.
-
Northern Ireland WeatherThis Evening and Tonight:Showers, scattered in the evening, will clear by midnight leaving the night dry with clear spells. Perhaps a touch of ground frost. Cloud will spread east towards morning. Minimum temperature 2 °C.
