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30/07/2001
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. Most of the warnings are being made by the high-tech firms who have been responsible for half of the profit forecast downgrades made in the last three months.
Even though the quantity of profit warnings being made has dropped by around a quarter in the last three months, analysts at Ernst and Young remain concerned that there are little grounds for optimism. Such a change in the pattern does not necessarily imply that the companies concerned were being realistic about the profit forecasts they were generating.
Alan Bloom, Head of Corporate Restructuring at Ernst & Young described the number of warning as “still high” and, sounding an ominous note, cautioned that it was still too early in the financial year for companies to “correct over-ambitious forecasts”.
He added that some managers were finding difficulty in making accurate forecasts on the brink of a recession, and cautioned that they should go back to basics in a bear economy as “more things tend to go wrong than right, and what can go wrong - will.”
(SP)
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. Most of the warnings are being made by the high-tech firms who have been responsible for half of the profit forecast downgrades made in the last three months.
Even though the quantity of profit warnings being made has dropped by around a quarter in the last three months, analysts at Ernst and Young remain concerned that there are little grounds for optimism. Such a change in the pattern does not necessarily imply that the companies concerned were being realistic about the profit forecasts they were generating.
Alan Bloom, Head of Corporate Restructuring at Ernst & Young described the number of warning as “still high” and, sounding an ominous note, cautioned that it was still too early in the financial year for companies to “correct over-ambitious forecasts”.
He added that some managers were finding difficulty in making accurate forecasts on the brink of a recession, and cautioned that they should go back to basics in a bear economy as “more things tend to go wrong than right, and what can go wrong - will.”
(SP)
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29 October 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.
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.
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.
07 August 2001
BASF issue another profits warning
Chemicals giant BASF have issued another profits warning as second quarter results revealed a drop in profits of euro 131 million, down around 15 per cent on the same period in 2000. The interim report noted that in 2001 BASF were expecting a decline in income from operations from ongoing business”.
BASF issue another profits warning
Chemicals giant BASF have issued another profits warning as second quarter results revealed a drop in profits of euro 131 million, down around 15 per cent on the same period in 2000. The interim report noted that in 2001 BASF were expecting a decline in income from operations from ongoing business”.
09 April 2002
LA Fitness unveils record jump in profits
UK health club chain LA Fitness has credited its popular in-house training programmes as resulting in a record jump in profits. The company, which has a fitness centre in Belfast's Ramada Hotel, revealed that pre-tax profits for the six months to 31 January climbed to £3m - 38 per cent up on the same period one year earlier.
LA Fitness unveils record jump in profits
UK health club chain LA Fitness has credited its popular in-house training programmes as resulting in a record jump in profits. The company, which has a fitness centre in Belfast's Ramada Hotel, revealed that pre-tax profits for the six months to 31 January climbed to £3m - 38 per cent up on the same period one year earlier.
26 February 2002
Trimmed down Prudential report rise in revenue
The UK insurance company Prudential has reported a 54 per cent rise in insurance and investment revenues. The Prudential unveiled that insurance and investment had risen to £21.5 billion for the whole of last year. The group said expansion during the year helped lift its operating profits to £1.19 billion, up 15 per cent, after restructuring costs.
Trimmed down Prudential report rise in revenue
The UK insurance company Prudential has reported a 54 per cent rise in insurance and investment revenues. The Prudential unveiled that insurance and investment had risen to £21.5 billion for the whole of last year. The group said expansion during the year helped lift its operating profits to £1.19 billion, up 15 per cent, after restructuring costs.
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