Quoted companies in the West Midlands issued just two profits warnings in the third quarter — a dramatic improvement on the same quarter last year, when six were issued.

The two profits warnings came from the Industrial Engineering and Household Goods sectors. The picture in the West Midlands contrasts strongly with the UK as a whole, where the number of profits warnings grew (by two) to 68.

The latest Profit Warnings report from Ernst & Young (www.ey.com) shows that the worst-hit region was London and the South East, where companies issued 38 warnings in the third quarter.

Tom Lukic, Ernst & Young’s restructuring partner in the Midlands, said: “Companies in the West Midlands are contending with a daunting level of uncertainty. The fall-out from Brexit has impacted profits warnings nationally, but the region continues to weather the storm.

For some companies, it has been business as usual, and the falling pound has been a help for some, rather than a hindrance. “Sluggish, disrupted and competitive markets don’t give companies the luxury of standing still, whatever the outlook.

“Companies will need to remain agile in their operations and capital structures to ensure that they are resilient in the face of new challenges — and to grasp opportunities.”