Profit warnings fall by largest amount on record

UK-listed firms issued 50 statements telling investors their profits would be lower than expected

Profit warnings from companies fell by the largest amount on record in the first three months of this year, according to EY.

UK-listed firms issued 50 statements telling investors their profits would be lower than expected, down 83 per cent from the 301 over the same period of 2020, the accountancy giant said.

But the lack of warnings ‘disguises the challenging outlook for UK businesses’, EY’s management consulting arm EY-Parthenon cautioned.

Its head of restructuring Alan Hudson said: ‘For many businesses, pressures will intensify as they restart operations, government support tapers, and working capital is stretched.’