Feeds

UK tech companies buck recovery trend

Doing worse than non-techs

  • alert
  • submit to reddit

Security and trust: The backbone of doing business over the internet

ComputerWire: IT Industry Intelligence

The number of UK companies issuing profit warnings in the first quarter of 2002 fell to its lowest level for 15 months, despite continued bad news from technology companies, according to a study by Ernst & Young.

The study shows that the number of profit warnings fell by 39% to 91 compared to 141 in the previous quarter, the sharpest decline since the survey started in 1998. While it indicates a potential upturn in economic conditions and better economic management, the news is not so good for UK hardware, software and technology services companies.

Of the 91 profit warnings issued in the quarter, 16 were from hardware, software and services companies. Indeed, while 17.6% of the profit warnings came from technology companies, they made up just 13% of the total number of quoted companies.

The number of warnings from software and services companies actually dropped to 11 from 19 in the previous quarter, while the hardware market saw the number of companies issuing warnings rise from three to five, representing 12% of the total number of quoted hardware companies.

Telecommunication services companies also suffered. Although only three companies in this sector issued profit warnings in the first quarter, that also represents 12% of the total number of quoted telecommunication services companies. There were no profit warnings from this sector in the previous quarter.

The large drop in the total number of profit warnings can be attributed to the fact that the 141 profit warnings issued in the fourth quarter was the highest total since the survey began, and was driven by the post-September 11 downturn. This is not necessarily indicative of an upturn, warned Ernst & Young.

The report indicates that companies have improved their economic management and forecasting skills, while there has been a partial return of confidence in the markets. The study predicts that in the second quarter of 2002, the number of UK profit warnings will be in the range of 80 to 100, with the possibility of a slight decline.

© ComputerWire. All rights reserved.

New hybrid storage solutions

More from The Register

next story
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.