Profit warnings from listed companies in the North West fall by more than a quarter in 2025

• Listed companies in the North West issued 21 profit warnings in 2025, down 28% from the 29 issued during 2024
• EY-Parthenon report reveals the region’s listed companies operating in consumer-facing sectors were most significantly affected – issuing a combined 12 warnings throughout last year
• Nationally, UK-listed businesses issued 240 profit warnings in 2025, down from 274 in 2024

UK-listed companies in the North West issued 21 profit warnings during 2025, down 28% from the 29 warnings issued in 2024, according to EY-Parthenon’s latest Profit Warnings report.

Twelve of the warnings issued by listed companies in the North West last year came from consumer-facing businesses, underscoring persistent consumer confidence challenges amid a sluggish economic growth outlook. Nationally, 75 profit warnings were issued by consumer-facing companies during 2025, closely followed by industrials companies with 69 warnings.

Meanwhile, four of the region’s warnings were issued by companies operating in FTSE Industrials sectors, and three came from technology companies.

The region’s listed businesses issued seven warnings during the final quarter of 2025, in line with the Q4 2024 figure, but up slightly from the six issued in Q3 2025.

In total, UK-listed companies issued 55 profit warnings in the fourth quarter of 2025, down from 71 during Q4 2024.

More than two in five (42%) of the 240 profit warnings issued by UK-listed companies throughout 2025 cited the impact of policy change and geopolitical uncertainty as a leading factor. This marked a significant increase from 12% during 2024, and the highest annual proportion recorded for this cause in more than 25 years of EY’s analysis.

The other main driver behind profit warnings in 2025 was contract and order cancellations or delays, cited in a third (33%) of warnings, followed by weaker consumer confidence and rising costs, each referenced in 11% of all warnings.

The 240 profit warnings issued last year was the lowest annual total since 2021, when 203 warnings were recorded.

Nearly a fifth (17%) of all UK-based listed businesses have issued at least one profit warning in the last 12 months, a similar percentage to this time last year (18%).

Sam Woodward, EY-Parthenon UK&I Financial Restructuring Partner in the North West, said: “The fall in profit warnings from listed companies in the North West last year highlights the resilience of the region’s business community, despite the UK continuing to see subdued levels of economic growth.

“However, muted consumer confidence remains a particular challenge for businesses in the North West, with more than half of the region’s warnings in 2025 coming from consumer-facing companies. This is expected to be a persistent hurdle for businesses to overcome in the year ahead, so stress-testing, scenario planning and managing cash flow should continue to be key priorities.”

Jo Robinson, EY-Parthenon Partner and UK&I Financial Restructuring Leader, added: “Our latest data shows that the pace of UK profit warnings has slowed, but this feels more like an uneasy pause than a turning point. Many firms continue to face a challenging and uncertain backdrop, with a record level of warnings referencing the knock-on effects of policy and geopolitical upheaval, including tariff-related impacts, Autumn Budget uncertainty, and employer National Insurance contributions changes coming into effect.

“In the last year, we’ve seen businesses shift their focus from planning for a return to previous norms, to recalibrating for a global landscape of lower growth, higher costs and rapid technological disruption. There is no playbook for adapting to this new reality and, while stronger liquidity and lower interest rates have given companies some breathing space, we expect restructuring activity to build as these issues come to a head.

“Much now hinges on what comes next: a bullish recovery where stability and falling interest rates boost confidence, or something more downbeat marked by slow growth and heightened volatility. With 2026 now well underway, these two contrasting narratives are finely balanced.”

One third of FTSE Retailers warned in 2025

The sectors with the highest number of profit warnings last year were Software and Computer Services (30 warnings), Industrial Support Services – which encompasses business service providers, industrial suppliers and recruitment companies – and Retailers (both 23).

When combining the FTSE Retailers sector and FTSE Personal Care, Drug and Grocery sector, which includes supermarkets, 34% of listed retailers issued a warning during 2025, marking the fourth consecutive year that this proportion has been above a third.