Analysis of UK Profit Warnings

In Strategy and Transactions

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 issued

136

profit warnings, up 66% year-on-year.

In Q2 2022, a record

58%

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.

Download our Profit Warnings Q2 2022 report

Sector insights

Profit Warnings Q2 2022: FTSE Retailers

FTSE Retailers issued 16 profit warnings in the first half of 2022, 60% higher year-on-year, as inflationary pressures build on consumers.

18 Jul 2022 Amber Mace

Profit Warnings Q2 2022: FTSE Finance and Credit Services

FTSE Finance and Credit Services companies issued seven profit warnings in the first half of 2022, the highest since 2020.

18 Jul 2022 Simon Edel

What can over 20 years of profit warning data tell us?

Find out more

Corporate content awards winner logos

Contact us