Kames' Adams: UK plc earnings will fall short in 2012

Kames Capital's head of UK equities Stephen Adams has predicted UK plc could see negative earnings in 2012, undershooting consensus forecasts by 15%.

The manager of the £360m Kames UK Equity fund said companies' earnings forecasts of 9%-10% in 2012 are too optimistic, and he is expecting to see increased profit warnings in the coming year. "Earnings forecasts are too high, we think earnings will be closer to zero or -5% but not 10%, there will be lots of profit warnings, the forecasts are just not realistic." However, Adams said yields are likely to remain robust despite a depressed outlook for corporate profits. Peter Shaw, who will become co-manager of the UK Equity fund on 1 January 2012, added: "Quality of stocks is very imp...