UK Profit Warnings Q4 2024 headlines
UK-listed companies issued 71 profit warnings in Q4 2024, marking an 8% decrease year-on-year, with the percentage of companies issuing warnings remaining steady at 6.4%. In 2024, nearly 19% of UK-listed companies issued profit warnings, the third highest total in 25 years of analysis by EY teams. Notably, three of the six highest annual levels of profit warnings in the last quarter-century occurred in the last three years.
The persistently high levels of profit warnings can be attributed to an extraordinary succession of forecasting challenges since the pandemic. In 2024, the primary challenge was the impact of uncertainty on corporate spending, which triggered record levels of profit warnings. However, our analysis suggests that forecasting struggles are not solely pandemic-related.
This indicates the need for a deeper examination of the forecasting process and how companies are adapting to longer-term changes in the economy and their markets.