Profit alerts up in economic gloom

Profit warnings from UK-listed companies hit their highest levels since pandemic as firms find themselves battered by economic uncertainty

Profit warnings from UK-listed companies have hit their highest levels since the pandemic as firms find themselves battered by economic uncertainty.

Around 75 alerts were issued in the first three months of this year, up from 72 in the same period of 2022, according to data from consultancy EY-Parthenon.

In black and white: Around 75 alerts were issued in the first three months of this year, up from 72 in the same period of 2022

The report cited ‘persistent economic uncertainty’ as a key factor behind the rise in profit warnings, with around 35 per cent citing delayed or cancelled contracts as customers cut spending due to ‘unreliable demand’. 

A key area of concern was the tech and telecoms sector, which saw its number of profit alerts nearly triple year-on-year to 16 as firms in the industry cut back costs as growth stumbled.

A record 305 warnings were issued in the first three months of 2020.

‘The extraordinary strength of headwinds over the last two years has left some businesses facing recession-like conditions,’ said Jo Robinson, partner at EY-Parthenon.

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