Profit warnings in 2008 at seven-year high

LONDON (Reuters) - Profit warnings by UK-listed firms hit a seven-year high in 2008, according to a survey published on Sunday.

Ernst & Young said profit warnings last year totalled 449, the highest yearly figure since 2001 and 17 percent higher than 2007.

It said that in the fourth quarter of 2008, 126 profit warnings were issued by UK quoted companies, the highest figure recorded in a fourth quarter since 2001 and 18 percent higher than the same period in 2007.

"The last 12 months have seen a significant leap in the number of profit warnings issued by listed companies in the UK making 2008 the worst year of warnings since 2001," said Keith McGregor, restructuring partner at Ernst & Young.

"With credit markets still frozen and confidence continuing to deteriorate, the next 12 months look set to be equally dramatic, if not more so."

The Ernst & Young survey said the highest warning sectors were support services with 67 and general retailing with 52.

McGregor said it would be difficult to predict anything other than a deteriorating economic climate in the UK over the coming months.

"However, amid the wreckage, there will be opportunities. Cash-rich and unleveraged companies will have the chance to acquire fundamentally sound businesses that are struggling under a mountain of debt," he added.

(Reporting by James Davey; Editing by David Cowell)