Recession bottoms out

Published:  14 July, 2009

LONDON: The number of profit warnings by UK-listed firms fell in April and June to their lowest second quarter level since 2003.

Accountants Ernst & Young said the decline may add to the growing feeling that the UK is nearing the bottom of the recession.

There were 63 warnings issued by firms listed on the London Stock Exchange in the quarter, down 36% from a year ago. But Ernst & Young added that the economy still had a "difficult road ahead".

Keith McGregor, restructuring partner at E&Y said: "Many companies have withdrawn profit guidance due to a difficult forecasting environment, while three successive quarters of negative growth have diminished market expectations. Add in hamstrung banks and a lingering credit crunch, and it's apparent that although the economy appears more stable and the outlook brighter than at any time in the past year, UK plc still has a difficult road ahead."

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