Profit warnings 'biggest concern' for UK managers

Although some see opportunity

Managers are growing increasingly concerned about the number of profit warnings issued by UK-listed companies, as the market punishes low earnings growth with increasing severity.

According to research by EY, the UK saw its biggest quarterly rise in profit warnings in four years in Q3, with 79 warnings being issued by listed companies during the period, up from 57 in the previous three months. This has led to increased volatility for many companies' share prices, including the likes of Rolls-Royce, Meggitt, and Pearson, which all shed more than 15% after issuing profit warnings. Jim Wood-Smith, head of research at Hawksmoor Investment Management, said: "Our greatest concern is profit warnings. Rolls-Royce got the headlines, but it was not alone. Markets are goi...