UK profits grow at weakest pace in three years in Q2 amid economic slowdown

Boosted by sterling weakness

David Brenchley
clock
UK profits are growing slowly
Image:

UK profits are growing slowly

Second-quarter results season was the weakest for UK companies since just before the Brexit referendum three years ago as the gap between overseas- and domestic-earning FTSE stocks continues to widen, according to The Share Centre.

Firms listed on the UK's main market reported revenue growth in Q2 of just 1.6%, while profit growth was 3.1%, the latest Profit Watch UK from The Share Centre noted. Growth in both top- and bottom-line numbers was flattered, though, by exchange rate movements. Continued Brexit-related sterling weakness boosted those that gain the majority of their sales in US dollars or euros. The biggest 40 stocks on the UK market, which are multi-national in their nature, posted profit growth of 13.3% - the ninth consecutive quarter their bottom line has risen. By contrast, companies outside the...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Equities

Industry Voice: T. Rowe Price's 2022 Midyear Market Outlook summary

Industry Voice: T. Rowe Price's 2022 Midyear Market Outlook summary

Transitioning to a new paradigm

Ritu Vohora, Investment Specialist, Capital Markets at T. Rowe Price
clock 23 June 2022 • 2 min read
Amazon shares are down 40% from its peak

Growth stock pickers feel like 'a kid in a candy shop'

'It is time to go shopping'

clock 22 June 2022 • 4 min read
30% increase in the number of clean tech deals.
UK

UK smaller business investment jumps to record £18.1bn in 2021

UK tech investment doubled to £8.2bn

clock 21 June 2022 • 2 min read
Trustpilot