Analysis of UK Profit Warnings

EY

We have tracked profit warnings from UK-registered companies for over 20 years, giving us powerful insight into business, capital and economy.

What is a profit warning?

A profit warning is an official statement to the stock exchange from a publicly listed company that says that it will report full-year profits materially below management or market expectations.

Our analysis of UK-registered companies listed on the the UK’s Main Market or Alternative Investment Market provides you with insights into profit warning trends and key economic, sector and market issues facing UK businesses. You can delve into the latest quarter’s findings and access over 14 years’ worth of data at the click of a button using our console. Use our profit warning data to understand trends, and identify the forces affecting your market and reshaping your path ahead.

UK Profit Warnings Q1 2022 Headlines

UK-listed companies issued 72 profit warnings in Q1 2022, the highest number since Q2 2020 and 44% more than Q1 2021.

Inflationary pressures that had built throughout 2021 were expected to put further pressure on company margins and consumers’ real incomes in 2022, before the war in Ukraine. But there is now a larger question mark over demand as we look at a year with ongoing COVID-19 disruption, alongside higher inflation, far greater uncertainty, and faster monetary tightening than we expected just a few months ago.

The post-pandemic recovery should continue in 2022, but this will be slower than expected – with greater downside risks. Volatility and uncertainty have become the standard backdrop to company operations. Furthermore, we need to ask when ‘crisis as usual’ becomes the norm for which companies plan.

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