UK profits grow at weakest pace in three years in Q2 amid economic slowdown

Boosted by sterling weakness

Second-quarter results season was the weakest for UK companies since just before the Brexit referendum three years ago as the gap between overseas- and domestic-earning FTSE stocks continues to widen, according to The Share Centre.

Firms listed on the UK's main market reported revenue growth in Q2 of just 1.6%, while profit growth was 3.1%, the latest Profit Watch UK from The Share Centre noted. Growth in both top- and bottom-line numbers was flattered, though, by exchange rate movements. Continued Brexit-related sterling weakness boosted those that gain the majority of their sales in US dollars or euros. The biggest 40 stocks on the UK market, which are multi-national in their nature, posted profit growth of 13.3% - the ninth consecutive quarter their bottom line has risen. By contrast, companies outside the...