9: Kirsten Tompkins - EY - Q1 Profit Warnings

We are delighted to once again welcome Kirsten Tompkins back on the show. Kirsten is a Market Analyst and Content Creator in Turnaround and Restructuring at EY-Parthenon, the strategy consulting arm of EY.

Kirsten is the coordinating editor and data analyst for EY-Parthenon’s Quarterly Analysis of UK Profit Warnings. Kirsten joins the show to discuss the latest Q1 2023 report, 'On a Knife Edge'.

Revised forecasts show that the UK economy is on track to avoid a technical recession in 2023, but EY's profit warning data suggests it could be experiencing a ‘rolling recession,’ where waves of pressure cause individual parts of the economy to contract in turn.

Banking stresses and higher-than-expected inflation also serve as a reminder that the recovery is still on a knife edge.

Profit warnings rose dramatically in the technology and telecommunications sectors in Q1 2023, as uncertainty and cost pressures continued to pass down supply chains. 35% of profit warnings in Q1 cited contract delays or cancellations.

Although recession has moved off the agenda, the range of possible outcomes is wide, and uncertainty remains a significant challenge in 2023.