“Mounting red flags of financial stress” have meant almost two-thirds of listed companies with defined benefit (DB) schemes have issued profit warnings this year, EY says.
The auditor's quarterly analysis of UK profit warnings, released today (26 October), showed a total of 228 profit warnings were issued by listed DB scheme sponsors in the first nine months of 2020. A total 90% of these warnings have been related to Covid-19, with all 32 issued in Q3 due to the pandemic. EY UK actuarial leader Gareth Mee said: "The sheer volume of profit warnings issued by companies with a pension scheme in the year to date underlines the market pressures many firms are facing as they work to keep the wheels turning on operations, while also continuing to meet their pensi...
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