Profit warnings jump 70% in Q4 for UK companies

Warnings on profits issued by UK firms saw the biggest leap in a decade in Q4 2011, driven by difficulties in the retail sector, according to Ernst & Young.

The company's latest quarterly profit warnings report said the number of warnings rose from 51 in Q3 to 88 in the final three months of the year, with the retail sector accounting for 39 warnings. At 14%, the proportion of listed companies putting out warnings in Q4 reached its highest level since 2008. The report said the increase may mark an upward trend that could continue into 2012. Retailer Tesco is among the highest profile UK companies to have warned on profits already this year. The 39 profit warnings from the retailers was greater than the combined number of warnings from ...