Profit warnings issued by UK-listed companies increase by 20% year-on-year
UK-listed companies issued 59 profit warnings during the second quarter of 2025. The 20% rise compared to the same period last year resulted amid widespread policy change and geopolitical uncertainty.
Having climbed to over 300 in 2022, the number of UK profit warnings of listed firms fell to 294 in 2023, and over 2024 it sank further to 274, according to new research from EY-Parthenon. This was the lowest number of warnings since 2013, when only 255 British businesses flagged up concerns about their financial performance. However, the picture may not have been as rosy as it appeared, when taken proportionally.
A UK listed company is a business which has any class of its securities admitted to the official list, as well as admission to trading on a Recognised Investment Exchange (RIE). And with a range of issues – from fears around AI not delivering on investment, to the US elections – resulting in volatility across stock exchanges, fewer firms were listing than previously, which may have partially accounted for the fall in warnings.
The first half of 2025 might have seen this trend correct – with EY-Parthenon’s latest update on listed profit warnings seeing a 20% year-on-year increase in the second quarter alone. The leading factor behind profit warnings during the second quarter was policy change and geopolitical uncertainty, cited in nearly 46% of warnings – something which seems to have particularly impacted the industrial support and software and computer sectors. The highest number of profit warnings were found there, amid speculation over the costs of materials and export fees.
Meanwhile, The proportion of profit warnings to cite contract and order cancellations or delays in the second quarter remained at a record 40%. One in three warnings cited tariff-related impacts, including weaker demand, supply chain disruption, and exchange-rate volatility – contributing to the fact that over the last 12 months, 19% of UK-listed businesses have issued at least one profit warning.
Jo Robinson, EY-Parthenon’s UK&I turnaround and restructuring strategy leader, said, “The latest profit warnings data reflects the scale of persistent uncertainty and how heavy it continues to weigh on UK businesses. While the announcement of global tariffs has clearly played a part in amplifying uncertainty, they are just one factor among broader geopolitical and policy upheaval. These pressures are often interlinked and, combined, they are having a significant effect on companies’ confidence, decision-making and spending.”
