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Uk Profit Warnings 'at Seven Year Low'

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The number of UK-listed companies issuing profit warnings during the second quarter of 2010 was at its lowest level for almost seven years, a report has said.

Between April and June, 45 firms warned profits would be lower than expected, according to Ernst & Young, compared with 53 in the previous three months.

It was the first time this number had fallen below 50 since 2003.

But public spending cuts mean this is set to rise, the accountants added.

"UK plc could be in for another rough ride," said Keith McGregor, restructuring partner at the accountancy firm.

"A number of companies have already cautioned that they expect much tougher times ahead when further fiscal tightening reins in public sector and consumer spending."

'Crunch year'

There were six warnings from the travel and leisure sector, though the report said that four of these were directly linked to disruption caused by the volcanic ash cloud in May.

Other sectors to issue several warnings included construction and software and computer services.

Contract amendments or cancellations were the main reason for profit warnings, the firm said.

And of the 45 warnings, six were from businesses whose contracts were subject to cancellation or delay in the early stages of government spending cuts.

It's the profit recovery.

Still I'm sure increases in profit is down to excellent trading conditions and has nothing at all to do with lots of businesses failing meaning less competition for those still trading.

Clearly this profit is down to the sustainable recovery that's been locked in.

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Businesses have gone into "lockdown" mode.

i.e. not taking on any loans, not taking on any staff, switching employees to 3 month contract work, not pursuing expansion, flogging off assets, hoarding cash, paying minimum wage etc.

On top of this, there are no real British companies to go bankrupt any more; they either have done already or are owned by foreigners.

remember this says UK listed companies.

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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