UK plc posted a pre-tax profit that surpassed the 2011 highs
The pre-tax profit of & # 39; UK plc & # 39; rose 13.7% in the third quarter of the year, reaching a total value of £ 217.9bn in the last 12 months.
After the newest Profit Watch Report from the Share Center, sales have risen in nine consecutive quarters, the longest expansion since the impact of the financial crisis in 2009, while earnings have risen in six consecutive quarters.
The report also said that pre-tax profit was almost twice as fast as the 7.6% increase in corporate revenue over the previous year.
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The oil sector was the largest contributor, helped by the $ 80 increase in oil prices, and accounted for a quarter of total annual sales.
"Oil company revenues, including Shell and BP, increased 27% year-over-year, accounting for almost two-thirds of total revenue growth reported by UK companies in the third quarter.
"The sharp rise in oil prices caused oil profits to increase more than six-fold compared to the previous year, rising to the highest quarterly level since early 2013. The sector alone contributed the largest share of pre-tax profit growth across the UK third quarter. "
On the other hand, the mining sector posted flat sales year-on-year as global trade tensions worsened. Despite this, profits were nearly a third higher in the same period thanks to cost reductions from companies. Retailers also struggled to see each company in the industry score lower or flat-rate in competition with online competitors.
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As a result of the miners' impact, The Share Center said average earnings growth this year would be 5.4% (6.7% three months ago). However, the numbers for next year were more positive and average earnings growth increased to 9.6%.
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Helal Miah, investment analyst at The Share Center, said: "Undoubtedly, investors should celebrate gains that have recently passed the highs last seen a few years ago, but this shows how long and slowly the recovery has come in. Costs for profit margins, which seem structurally lower than in the past.
"Two cautions leave the good news from the latest numbers reported by UK companies: First, most of the current earnings growth is of relatively low quality, as it largely reflects the impact of higher oil prices, which are out of scope Secondly Earnings growth is down to fewer companies, suggesting that many companies find challenging trading conditions.
"However, there are encouraging signs: many companies have worked hard to cut costs, and legacy issues are a thing of the past in key sectors such as banking, and the market expects average earnings growth to improve next year Analysts have also raised the forecasts for more companies than downgraded, so the improvement is not driven by just a handful of big stocks. "