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| Version 1 | Version 2 |
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| Profit warnings hit six-year high | Profit warnings hit six-year high |
| (10 minutes later) | |
| Profit warnings by UK listed firms are at their highest level for six years. | Profit warnings by UK listed firms are at their highest level for six years. |
| Research by Ernst & Young shows nearly 400 warnings about disappointing profits were issued in 2007, up by more than 10% on the previous year. | Research by Ernst & Young shows nearly 400 warnings about disappointing profits were issued in 2007, up by more than 10% on the previous year. |
| The final quarter saw the highest rise of all, up by more than 20% on 2006, largely due to the credit crunch. | The final quarter saw the highest rise of all, up by more than 20% on 2006, largely due to the credit crunch. |
| The retail sector suffered badly, with an annual total of a record breaking 47 profit warnings, and so too did the leisure industry, including pub chains. | The retail sector suffered badly, with an annual total of a record breaking 47 profit warnings, and so too did the leisure industry, including pub chains. |
| Ernst & Young said wet weather and "regulatory changes" like the smoking ban were largely to blame for deterring drinkers. | Ernst & Young said wet weather and "regulatory changes" like the smoking ban were largely to blame for deterring drinkers. |
| 'Tough year ahead' | 'Tough year ahead' |
| The figure of 384 profit warnings in 2007 is the highest since the technology-led stock market crash in 2001. | The figure of 384 profit warnings in 2007 is the highest since the technology-led stock market crash in 2001. |
| One in five warnings blamed the fallout from the US sub prime mortgage crisis and the credit crunch. Most of those were from firms outside the financial sector. | One in five warnings blamed the fallout from the US sub prime mortgage crisis and the credit crunch. Most of those were from firms outside the financial sector. |
| PROFIT WARNINGS Support services: 22 Retailers: 12 Media: 10 Software and computer services: 9 Travel and leisure: 8 Ernst & Young figures for final quarter of 2007 | PROFIT WARNINGS Support services: 22 Retailers: 12 Media: 10 Software and computer services: 9 Travel and leisure: 8 Ernst & Young figures for final quarter of 2007 |
| Ernst & Young said 2008 would be "a tough year" with a slowing economy, although it was as yet unclear how significant the slow down would be. | Ernst & Young said 2008 would be "a tough year" with a slowing economy, although it was as yet unclear how significant the slow down would be. |
| In the final quarter of 2007, support services issued 22 profit warnings; the retail sector 12; media firms 10; software and computer services nine, and travel and leisure companies eight.. | In the final quarter of 2007, support services issued 22 profit warnings; the retail sector 12; media firms 10; software and computer services nine, and travel and leisure companies eight.. |
| Andrew Wollaston, corporate restructuring partner at Ernst & Young, said that while Christmas "wasn't a complete disaster" on the High Street, some companies suffered more than others, such as clothing, footwear and electrical retailers. | Andrew Wollaston, corporate restructuring partner at Ernst & Young, said that while Christmas "wasn't a complete disaster" on the High Street, some companies suffered more than others, such as clothing, footwear and electrical retailers. |
| "On the winners' side, department stores appear to have held up well, along with grocery sales, whilst games console retailers were buoyed by demand for the must-have present this Christmas," Mr Wollaston said. | "On the winners' side, department stores appear to have held up well, along with grocery sales, whilst games console retailers were buoyed by demand for the must-have present this Christmas," Mr Wollaston said. |
| Pubs feel pinch | Pubs feel pinch |
| Mr Wollaston said Christmas may have been "the consumer's last hurrah". | Mr Wollaston said Christmas may have been "the consumer's last hurrah". |
| "The era of easy credit is over and I think in 2008 retail sales growth will stall as the discretionary spending comes under pressure," he said. | "The era of easy credit is over and I think in 2008 retail sales growth will stall as the discretionary spending comes under pressure," he said. |
| "Corporate activity and restructurings of poorly performing retailers look inevitable in the year ahead." | "Corporate activity and restructurings of poorly performing retailers look inevitable in the year ahead." |
| Overall in 2007, leisure industry, particularly gaming, pub and restaurant chains, issued a total of 21 warnings, up 40% from 2006. | Overall in 2007, leisure industry, particularly gaming, pub and restaurant chains, issued a total of 21 warnings, up 40% from 2006. |
| Ernst & Young warned that businesses relying on the credit markets or consumer spending are likely to struggle most in the coming year. | Ernst & Young warned that businesses relying on the credit markets or consumer spending are likely to struggle most in the coming year. |