UK profit warnings hit near two-year high before autumn Budget

Summarised from 3 outlets · 4 reports · Updated 19 Oct, 00:14 · Archive

Sixty-five UK-listed companies issued profit warnings in the third quarter, the highest quarterly figure since late 2024.

Sixty-five UK-listed companies issued profit warnings in the three months to the end of September, according to research from advisory firm EY. This represents an increase from 59 in the previous quarter and marks the highest quarterly figure since the final three months of 2024, when 71 warnings were released.

Companies have come under pressure from rising costs and weak consumer confidence ahead of the first Budget since Andy Burnham's appointment as Prime Minister. Almost a fifth of all listed companies have issued at least one profit warning over the past 12 months.

Geopolitical instability and policy shifts were identified as the primary drivers of profit warnings, featuring in 54 per cent of cases during the third quarter. Meanwhile, 38 per cent of the warnings specifically referenced the impact of the conflict in the Middle East. More than a third of warnings, 35 per cent, cited rising costs as a leading factor, pointing towards inflationary pressures and higher business costs weighing on firms.

Jo Robinson, EY-Parthenon partner and UK&I financial restructuring leader, said the figures show 'the variety of structural changes and challenges that companies are currently navigating'. He added: 'This is not a conventional economic cycle. For much of the post-war period, the economy followed a familiar demand-led boom-and-bust pattern but, since the pandemic, supply-side disruption including material and labour shortages, energy shocks, tariffs and wider geopolitical disruption has become far more significant.'

The data comes less than two weeks ahead of the autumn Budget, amid calls from industry for the Government to avoid business tax increases following cost pressures linked to recent budgets.

How it is being reported

• Profit warnings hit highest level since 2024 as Budget uncertainty bitesProfit warnings by UK-listed firms have surged to the highest level for nearly two years as Budget uncertainty bites.This is Money · 19 Oct, 00:02
• UK profit warnings soar to two year high ahead of autumn BudgetAlmost a fifth of list companies, 17 per cent, have issued at least one profit warning over the past 12 monthsThe Independent · 19 Oct, 00:01
• UK profit warnings jump to highest since 2024 ahead of BudgetEY’s latest profit warning report showed that 65 UK-listed companies warned over profits in the three months to the end of September.Evening Standard · 19 Oct, 00:01
• UK profit warnings jump to highest since 2024 ahead of BudgetEY’s latest profit warning report showed that 65 UK-listed companies warned over profits in the three months to the end of September.Independent Business · 19 Oct, 00:01

In this story: UK · EY · Andy Burnham · Middle East

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