We have tracked profit warnings from UK-registered companies since 1999, giving us powerful insight into business, capital and economy.
UK-listed companies issued 49 profit warnings in Q2 2024, 26% fewer than the same quarter of 2023 and the lowest number since Q2 2021.
A high pace of profit warnings is often followed by a steep fall if conditions improve and more companies meet lowered expectations – as we saw in 2009 and 2021 after the global financial crisis and the pandemic. Whilst our data undoubtedly reflects 2024’s economic recovery, it also underscores the challenges ahead.
The latest profit warnings show the ongoing impact of cost-cutting, as well as companies’ increasing investment needs, which will be hard to achieve against a backdrop of weak growth and higher capital costs. Restructuring activity continues to rise as companies wrestle with these pressures. The economic outlook has improved, but companies still need to be prepared for a wide variety of outcomes in 2024.
