Exceptional costs, exceptional challenges

Our research Exceptional costs, exceptional challenges – the CFO’s art of driving business resilience among FTSE100 companies looks at the exceptional costs and restructuring costs that FTSE100 businesses recorded in their last two financial years.

The research reveals that total restructuring costs (including exceptional and non-exceptional costs) increased to £8.2bn in 2018-19, up 30% from £6.3bn in 2017-18. It also shows that exceptional restructuring costs were the most frequently recorded type of exceptional cost by FTSE100 businesses in 2018-19, affecting 26% of companies.

51 FTSE100 businesses reported to their shareholders that they were undertaking major restructuring programmes in 2018-19, up from 49 in 2017-18. In addition, we found that the average annual restructuring costs per company increased to £161m in 2018-19, up from £128m in 2017-18.

Overall, the research shows that the restructuring costs of the UK's top businesses continues to rise, indicating that businesses are having to adapt to a range of tough new challenges. We believe that this trend will be accentuated by the impact of the coronavirus pandemic and Brexit.