Creditsafe includes London Stock Exchange data within its company credit reports and monitoring service that will advise ‘Profit warnings’ issued for companies on the London Stock Exchange.
A profit warning can in some cases be used as an early indicator that a company is struggling and can help predict insolvency. Some examples of where a Profit Warning was issued and then company entered a form of insolvency are:
JOHNSTON PRESS PLC/ SC015382 issued a warning on the London stock exchange in June advising the below-
Trading so far this year has seen Group revenues down 9%, but a continuing strong performance from the i newspaper. Expectations for the full calendar year 2018 remain in line with market expectations. The trading environment remains extremely challenging, exacerbated in recent months by uncertainty around future paper costs and the impact of GDPR on digital advertising revenues. We expect to see continued pressure on revenues in the second half of the year, and a requirement for cost savings.
Johnston Press PLC entered administration in Nov 18.
CRAWSHAW GROUP PLC/04755803 the warning issued was as stated below-
Further to the AGM trading update on 27 June, the trading performance of our high street shops continues to remain challenging. Rising shop rents and high business rates along with lower footfall and increased discounter competition, has directly impacted sales and profitability as expected. Half year like-for-like sales were -13.2% (-12.9% for the first 20 weeks). Group sales for the first half of the year were £21.6m (H117: £22.1m). Due to the continued challenging trading, the Board expect the full year Group sales to January 2019 to be flat on the previous year and underlying operating loss of approximately £3m. The Group had £3.3m cash at 29 July 2018 (£4.7m at 28 January 2018).
The company entered administration in November 2018.