FTSE Finance and Credit Services Companies Issue Record Profit Warnings
- Profit warnings surge 66% year-on-year in H1 FY22
- Rising costs cited as main reason for profit warnings
- FTSE finance and credit services companies issued seven profit warnings in H1 FY22
- Consumer-facing sectors accounted for half of all profit warnings
- Online retailers hit hard by shift back to bricks and mortar stores
- Companies with demand optimization, value for money, and sustainable options fare better
The number of profit warnings issued by UK-listed companies has increased 66% year-on-year in the first half of 2022, with rising costs as the primary reason behind these warnings. FTSE finance and credit services companies issued seven profit warnings in H1 FY22, marking the sector’s highest first-half total since 2009. Consumer-facing sectors accounted for half of all profit warnings, compared to a third in H1 FY21. Online retailers were disproportionately affected by the shift back to physical stores and increasing delivery costs and product returns. Companies that focus on demand optimization, value for money, and sustainable options are better equipped to weather the storm.
Factuality Level: 9
Factuality Justification: The article provides accurate information about the increase in profit warnings issued by UK-listed companies, citing rising costs as the main reason behind them. It also includes specific numbers and comparisons to previous years and sectors. The quotes from experts provide additional context and insight into how companies can manage these challenges.
Noise Level: 3
Noise Justification: The article provides relevant information about the increase in profit warnings issued by UK-listed companies and identifies rising costs as the main reason behind them. It also highlights specific sectors affected and offers insights from industry experts on how to manage cost inflation and maintain a strong balance sheet. The article stays on topic and supports its claims with data.
Financial Relevance: Yes
Financial Markets Impacted: UK-listed companies, particularly those in finance and credit services, retail, personal care, drug, and grocery stores sectors
Financial Rating Justification: The article discusses the increase in profit warnings issued by UK-listed companies due to rising costs and labor market issues, impacting various sectors such as retail and consumer products. It also mentions the potential implications for credit providers.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
www.retailsector.co.uk