Soaring business costs trigger wave of profit warnings

Swelling costs have crimped UK companies’ margins, leading to a surge in profit warnings, reveals a new report published today.

The volume of profit warnings sounded by UK-listed companies climbed 66 per cent in the first half of this year compared to the same period in 2021, up to 136 from 82, according to EY-Parthenon.

A record 58 per cent of firms said rising costs were the main reason behind sounding the alarm on profits, up from 43 per cent in the first quarter of this year, underscoring the intense pressure inflation heaping on businesses.