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EY Profit Warning Data: Outlook Improving

CREDIT UPDATE

EY-Parthenon, the economics thinktank of the big 4 accountancy, issued data for 4Q23 on UK profit warning frequency this morning, which was a minor credit positive for the wider UK economy.


  • UK profit warnings were down 7% y/y in 4Q23 but in line with 5yr seasonal average.
  • 18.2% of UK companies issued a profit warning across the whole of 2023, higher than the peak (of 17.7%) in the 2008 financial crisis… but lower than 2020, oddly.
  • Qualitative comments noted reducing cost pressures in the final quarter and increased hopes of rate cuts and “the outlook has improved”.

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