The latest study conducted by EY reveals that the number of warnings that listed firms in Yorkshire issued to their investors about reduced profits rose significantly last year.

EY’s new Profit Warnings report shows that there was a rise of close to 80% in the number of warnings that listed businesses throughout Yorkshire put out during 2020. In total, 43 of them were issued over the course of last year, which is a steep rise in comparison with the 24 issued during the previous year, representing an increase of 79%.

There is no question that the COVID-19 pandemic and the various restrictions imposed by the government to try to tackle the spread of the virus were the primary causes of this. The fact that it is also a much higher figure than the 19 profit warnings issued by firms in Yorkshire when the last financial crisis was at its height, back in 2008, shows just how big an economic impact the pandemic has had.

The majority of these warnings were put out during the first quarter of 2020, with 26 throughout that period, and leisure, travel and retail were the sectors that accounted for most of them. A total of 13 were issued by firms in these sectors, which have been particularly hit by the pandemic. The next most affected sector was industrials, with 10 warnings issued by firms in that field.

Accountants in South Yorkshire can help companies based within the region put together detailed and accurate financial records for their investors.