In Q1 2024, the number of profit warnings issued by UK listed companies fell 7% year-on-year to 70 and dropped slightly from Q4 2023, when 77 warnings were issued. Despite the quarterly fall in warnings, the number of companies warning for the first time in 12 months reached its highest level since Q1 2022, with 61% of companies in Q1 2024 issuing a 'new' warning.
By the end of the first quarter of 2024, 39 companies had issued three or more warnings over the last 12 months, with just over a fifth of these companies delisting - or in the process of doing so - due to insolvency or acquisition.
Contract cancellations and delays were cited as the main reason for warnings by 29% of companies, whilst higher costs and weaker consumer confidence each accounted for 17% of warnings in Q1 2024.
"Larger companies and sectors such as luxury goods, which typically show resilience in economic downturns, are now starting to feel these pressures build."
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