UK Profit Warnings Rise as Iran War Pushes Up Costs
EY counted 65 warnings over the summer, with geopolitical uncertainty and the Middle East conflict among the reasons companies cited.
Key takeaways
- London-listed businesses issued 65 profit warnings over the summer, the most since the fourth quarter of 2024.
- Six housebuilders issued warnings, taking the year-to-date total to 14.
London-listed businesses issued 65 profit warnings over the summer, the most since the fourth quarter of 2024, according to EY. The total was up from 59 in the second quarter.
More than half of the companies cited geopolitical uncertainty, while 38% pointed to the ongoing Middle East conflict. EY said businesses also blamed contract or order cancellations and delays, as well as weaker consumer confidence.
Construction and household goods companies each accounted for eight warnings. Six came from housebuilders, bringing their year-to-date total to 14, compared with 10 during the peak of the 2008 global financial crisis.
Vistry, Persimmon and Taylor Wimpey cited cost inflation, lower sales rates and muted demand from first-time buyers. Nearly 20% of UK-listed businesses have issued a profit warning in the past 12 months, EY said.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
