Profits hit as economy slows down

The UK economy has slowed as businesses continue to have uncertainties about Brexit, and the world economy has also slowed according to the Bank of England.

Although the risk of a no-deal Brexit has fallen for the moment, uncertainty continues to face UK households and businesses.

The slowdown has seen UK quoted companies issue 77 profit warnings in the third quarter of 2019, reflecting both the uncertainty of Brexit and rising macro-economic uncertainty.

There are increasing concerns not just for the UK, but also for global growth, as political and trade disputes continue to affect confidence and investment.

Retailers on the Financial Times Stock Exchange issued 28 profit warnings in the first three quarters of 2019, with a third of the sector warning in the last 12 months. Retailers face sales pressure as online sales continue to grow.

Recent Bank of England reports show that UK productivity is weakening and that employers are laying people off.

If you have any concerns or fears about your business, please speak to your normal Bishop Fleming contact or one of the Restructuring team.