Profit alerts up in economic gloom
Profit warnings from UK listed companies hit their highest level since the pandemic as businesses battered by economic uncertainty
Profit warnings from UK-listed companies have reached their highest levels since the pandemic as businesses are battered by economic uncertainty.
According to data from consultancy EY-Parthenon, about 75 warnings were issued in the first three months of this year, up from 72 in the same period of 2022.
In black and white: about 75 warnings have been issued in the first three months of this year, compared to 72 in the same period of 2022
The report cited “ongoing economic uncertainty” as a key factor behind the rise in profit warnings, with about 35 percent reporting postponed or canceled contracts as customers slashed spending due to “unreliable demand.”
A major concern was the technology and telecoms sector, where the number of profit warnings nearly tripled to 16 year over year as companies in the sector cut costs while growth stagnated.
A record 305 warnings were issued in the first three months of 2020.
“The extraordinary strength of the headwinds of the past two years has left some companies facing recession-like conditions,” said Jo Robinson, partner at EY-Parthenon.