Analysis of UK Profit Warnings

In Strategy and Transactions

We have tracked profit warnings from UK registered companies listed on the UK’s Main Market or AIM for 20 years, giving us powerful insight into business, capital and the UK 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:

Our analysis 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, access twelve years’ worth of data at the click of a button using our console or understand the trends of the past 20 years to identify the forces affecting your market and shape your path ahead.

Q1 2021 Headlines

UK listed companies issued their lowest total of first quarter profit warnings in 21 years in Q1 2021, as economic recovery and vaccine hopes combined to help companies meet or beat full-year forecasts dramatically lowered by the pandemic.

Economic growth is returning quicker and stronger than expected, but the recovery is just the start of the struggle for some companies. The last year has profoundly altered behaviours, restructured supply chains, and left companies bruised and existing on government life-support. Lifting pandemic restrictions won’t turn back the clock.

We’ve reached a crossroads in this pandemic. Government support has provided financial breathing space for companies to take bold action to recapitalise, restructure and reposition. The recovery is coming, but companies need to make sure they – and their suppliers – are ready.

UK companies issued

50

profit warnings in Q1 2021, the lowest first quarter since 2000

Since the start of March 2020,

64

UK listed companies issued at least their third profit warning

In the last 12 months,

43%

FTSE Aerospace and Defense companies have issued a profit warning

COVID-19 triggered

88%

of UK profit warnings in Q1 2021

Download our Profit Warnings Q1 2021 report

Sector insights

Profit warnings focus on sectors Q1 2021: FTSE Aerospace and Defense

43% of FTSE Aerospace and Defense companies have issued a profit warning in the last 12 months

4 May 2021 Dan Hurd

Profit warnings focus on sectors Q1 2021: FTSE Travel and Leisure

33% of FTSE Travel and Leisure companies have issued a profit warning in the last 12 months

4 May 2021 EY UK

What can 20 years of profit warning data tell us?

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