Profit warnings from Britain's listed companies fell dramatically in the second quarter, according to a new report, boosting hopes of strong U.K. growth figures for the second quarter.
Ernst and Young (EY) said 54 U.K.-listed companies warned over earnings in the second quarter – 25 percent fewer than in the first quarter.
The number of companies that issued profit warnings was the lowest since 2010, according to the report, when it was just 51.
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Keith McGregor, EY's head of restructuring for Europe, Middle East and Africa, said the low number of profit warnings was a sign of growing confidence in Britain's economy.
"The U.K. recovery certainly appears more entrenched and better placed to ride out the aftershocks that have triggered sobering second half dips in economic activity in recent years," he said.
"A more benign economic climate should keep the number of profit warnings low, but below par growth will continue to create challenges."
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EY's report comes ahead of the first estimate of U.K. gross domestic product (GDP) on Thursday, and follows a slew of better economic news which has led a number of organizations, including the International Monetary Fund, to upgrade their growth forecasts for the country.