Analysis of UK Profit Warnings
We have tracked profit warnings from UK-registered companies since 1999, 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 15 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 Q2 2022 headlines
UK-listed companies issued 64 profit warnings in Q2 2022, 50% more than the same quarter of 2021 and 10% above the pre-pandemic average.
Companies are facing a combination of headwinds that will challenge even experienced management teams. At the start of 2022, profit warnings were primarily triggered by cost and supply issues, hitting exposed companies hard, whilst leaving others unharmed. But demand headwinds and falling confidence are having a much blunter impact, and will expose underlying operational and balance sheet stresses.
Companies shouldn’t retrench and stop planning for the future, but neither can they carry on as normal and assume that something will turn up. Investors’ increased risk aversion means that events could move rapidly if companies do not respond to situations swiftly and prove their ability to find sustainable solutions.
In H1 2022, UK quoted companies issued136
profit warnings, up 66% year-on-year.
In Q2 2022, a record58%
of profit warnings cited increasing costs.
In Q2 2022,19%
of profit warnings cited labour market issues.
In Q2 2022,50%
of profit warnings came from consumer sectors.