There was a record number of profit warnings issued by listed West Midlands companies in the first nine months of 2020, according to new research.
The warnings rose from 16 to 35, an increase of 119 per cent, with covid-19 unsurprisingly cited as the principal reason by 80 per cent of those companies.
The new report also says the UK surpassed a previous record which had stood for 19 years.
New figures are published in the latest quarterly analysis of UK profit warnings by financial services firm EY.
Dan Hurd, head of turnaround and restructuring for EY in the Midlands, said: "Most of the profit warnings from quoted companies in the West Midlands have been attributed to covid-19, demonstrating the very real impact the pandemic is having on our listed companies.
"The Midlands is arguably most well-known for its strength in automotive manufacturing which has certainly had its challenges so far this year.
"First the pandemic affected demand and international supply chains.
"Then, as demand and production levels began to return, companies had to grapple with making their workplaces covid-19 secure.
"I think it's fair to say our regions' listed companies, including our automotive manufacturers, will be keeping a close eye on the risk of further restrictions, as well as their working capital requirements and the potential for Brexit disruption during the next quarter and beyond."
Across the UK, the number of profit warnings issued by quoted companies has reached a new, annual high with more expected due to continued uncertainty from covid-19, Brexit and the easing of government support, EY says.
The total number of national profit warnings for the first three quarters of 2020 was 524, setting a new record for the annual total, surpassing the previous high of 506 in 2001.
However, the third quarter profit warnings total (58) was both below average for the quarter (64) and 25 per cent lower than quarter three in 2019 (77).
Mr Hurd added: "The summer offered some respite for businesses to prepare for what is expected to be an exceptionally difficult autumn and winter.
"Many businesses have managed to navigate the day-to-day stresses of the current environment by adopting survival tactics.
"However, with government support measures winding down and the reality of Brexit just around the corner, merely going back to basics isn't enough."
