Five profit warnings issued by listed companies in the North West in first quarter of 2025

• Listed companies in the North West issued a total of five profit warnings during the first quarter of 2025, down slightly from the seven issued in the same period last year
• The latest figure also represents a fall from the seven warnings issued in Q4 2024
• Consumer facing listed companies in the North West were most significantly affected, issuing three warnings during the first quarter
• Nationally, the UK saw a total of 62 profit warnings in Q1 2025, representing an 11% year-on-year fall

North West, 13^th May 2025: UK-listed companies in the North West issued five profit warnings during the first quarter of the year, representing a slight year-on-year fall from the seven warnings issued in Q1 2024, according to EY-Parthenon’s latest Profit Warnings report.

The figure also represents a quarter-on-quarter fall in warnings after seven were issued in Q4 2024.

Consumer facing listed companies in the North West issued the most warnings during the first quarter with a total of three, highlighting ongoing consumer sentiment challenges amid subdued levels of economic growth.

Nationally, UK-listed companies issued a total of 62 profit warnings in Q1 2025, marking an 11% year-on-year fall. However, the proportion of UK-listed businesses to issue a warning in the last 12 months remains high, at 18%.

More than a quarter (26%) of warnings across the UK cited policy change and geopolitical uncertainty as key drivers, while 18% cited labour market issues.

Sam Woodward, EY-Parthenon UK&I Turnaround and Restructuring Partner in the North West, said: “Following a challenging second half of 2024 for listed companies in the North West, the region’s businesses started 2025 on a resilient footing, with profit warnings down slightly both year-on-year and quarter-on-quarter. Given the complex and challenging economic backdrop characterised by subdued UK economic growth, the region’s business community has shown resolve in navigating persistent uncertainty.

“In Q1, listed consumer facing businesses in the region faced difficulties due to ongoing consumer sentiment challenges linked to the relatively downbeat economic outlook. Recent global trade disruption has added another layer of complexity to the business landscape both in the UK and globally, which means resilience, stress testing and forward planning will be as critical as ever as companies prepare to enter another period of heightened uncertainty.”

Impact of tariffs already clear in April

EY-Parthenon’s latest Profit Warnings report found that the leading factor behind profit warnings in Q1 was contract and order cancellations or delays, cited in 40% of warnings – the highest percentage recorded for this cause in 25 years of EY’s analysis.

Looking beyond the first quarter, half (50%) of the profit warnings issued by UK-listed businesses in April cited the direct or indirect impact of tariffs and resulting recent global trade disruption. The average share price fall on the day of warning also climbed, up from 13% in Q4 2024 to 17% in Q1 2025 and almost a fifth (19%) in April 2025.

Nationally, the FTSE sectors with the highest number of profit warnings in Q1 2025 were Software and Computer Services, with 10 warnings issued, and Industrial Support Services – which encompasses business service providers, industrial suppliers and recruitment companies – with nine. FTSE Construction and Materials companies issued five profit warnings during the first quarter.

Claire Gambles, EY-Parthenon Turnaround and Restructuring Strategy Partner, added:

“UK companies have faced many challenges in recent years, but ongoing global trade disruption has the potential to bring even more substantial and far-reaching repercussions. Demand and supply shocks from the pandemic and geopolitical events were significant but primarily cyclical disruptions, whereas major changes to international trade policy may have more enduring effects.

“Naturally, these changes won’t happen immediately, and companies will need to balance immediate responses, such as strengthening financial resilience, with strategic shifts, whether by reassessing supply chains and pricing models or exploring new global partnerships, to help respond to further uncertainty over the coming months.”