Listed retailers suffer profit decline

Profit warnings from UK-listed retailers soared to their highest number in eight years in the first three months of the year. Figures published in a report by Ernst & Young reveal that 18 general retailers warned on profits in the first quarter, the highest number since E&Y started monitoring profit warnings. The total number of profit warnings by UK-listed companies also soared to 103 - breaking through the 100 barrier for the first time since the third quarter of 2005.

"The retail sector has become polarised. Just 11 companies have been responsible for over 70 per cent of sector profit warnings in the last 12 months," said Keith McGregor, corporate restructuring partner at E&Y. "Nine companies warning this quarter have warned more than once in the last year. Whichever way we look at it, a small group of retailers appear to be underperforming. Even in relatively benign conditions, several retailers have found themselves in financial distress."