Two-in-three DB sponsors issue profit warnings in 2020

90% relate to Covid-19

Hope William-Smith
clock • 2 min read

“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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Partner Insight: The psychology of retirement

Partner Insight: The psychology of retirement

Bridging the advisers-clients gap: How emotional intelligence can help build deeper trust with clients and better understand their financial goals

James Woodfall, Raise Your El.
clock 15 September 2025 • 1 min read
Managing drawdown risk: A new frontier in retirement planning

Managing drawdown risk: A new frontier in retirement planning

'Volatility alone is no longer a sufficient risk measure'

Matthew Wright
clock 29 August 2025 • 4 min read
Sounding the alarm: Facing the retirement reality check

Sounding the alarm: Facing the retirement reality check

'At the heart of the issue is a worrying lack of engagement'

Laith Khalaf
clock 17 June 2025 • 3 min read