Profit warnings issued by listed companies in the North West down by almost half year-on-year

• Listed companies in the North West issued six profit warnings in Q3 2025, down from the 11 issued during the same period of last year
• Listed companies in the region operating in consumer-facing sectors were most significantly affected – issuing four warnings in Q3
• Nationally, the UK saw a total of 64 profit warnings issued in Q3 2025, down from 84 during the same period last year

UK-listed companies in the North West issued six profit warnings during the third quarter of 2025, down 45% compared to the 11 warnings issued in the same period of last year, according to EY-Parthenon’s latest Profit Warnings report.

Despite the year-on-year fall, the number of profit warnings issued by listed companies in the region doubled quarter-on-quarter, up from three during Q2 2025.

Four of the warnings issued by North West companies in Q3 came from consumer-facing businesses, highlighting subdued consumer sentiment amid a challenging economic environment characterised by slow growth.  This was also reflected in the national figures, with 19% of warnings citing weak consumer confidence.

UK listed companies issued a total of 64 profit warnings in the third quarter, down from 84 during Q3 2024.

The leading factor behind profit warnings across all listed UK companies during the third quarter was policy change and geopolitical uncertainty, cited in nearly half (47%) of warnings. This marked the highest percentage recorded for this cause in more than 25 years of EY’s analysis, and a significant increase from 17% in Q3 2024.

A third (34%) of profit warnings issued in the third quarter cited contract and order cancellations or delays, while 22% referenced tariff-related impacts, including weaker demand and supply chain disruption.

Over the last 12 months, nearly a fifth (18%) of UK-listed businesses have issued at least one profit warning.

Sam Woodward, EY-Parthenon UK&I Turnaround and Restructuring Partner in the North West, said: “Profit warnings from listed companies in the North West are down by over a third in the first three quarters of the year compared to the same period in 2024. This demonstrates the resilience of the region’s business community despite an uncertain economic backdrop, which has presented a range of challenges including sticky inflation, geopolitical trade market uncertainty and policy changes.

“Consumer sentiment continues to face challenges, so it was unsurprising to see that more than half of the warnings from the region’s listed companies in the third quarter came from consumer-facing businesses, echoing the trend seen across the first half of the year in the North West. This was also consistent with the national story, with downbeat consumer confidence cited in a fifth of all Q3 warnings, the highest proportion since 2022. With uncertainty currently surrounding next month’s Autumn Budget, resilience, stress testing and scenario planning will continue to be crucial for all of the region’s businesses going forward, and particularly those in consumer-facing sectors.”

Jo Robinson, EY-Parthenon Partner and UK&I Financial Restructuring Leader, added: “The latest profit warnings data shows that the persistent uncertainty which has weighed heavily on UK businesses has spread to households. The standout trend in Q3 was the knock-on effect of weakening consumer confidence, at its highest since late 2022 when rising energy prices and the wider cost-of-living crisis were having an acute impact on consumer behaviour.

“Companies are still clearly seeing ripples from earlier geopolitical tensions and policy shifts, and the proportion of firms to have issued a warning in the last 12 months has consistently been at a level typically associated with a period of economic shock for the past two years. As the Government faces difficult decisions ahead of the Autumn Budget, businesses are continuing to navigate market shifts and external threats, adapting their operations and supply chains to ongoing uncertainty and growing risks like cyberattacks.

“While buoyant equity markets over the summer sustained a narrative of corporate resilience, resilience is not immunity. Forecasting confidence is being disrupted by near-constant change, and restructuring activity continues to rise as persistent pressures leave many companies with tighter liquidity and reduced flexibility. In this environment, firms must adopt a measured, scenario-based approach that balances both agility and strategic clarity.”

Software services, construction and media sectors lead UK warnings in Q3:

The FTSE sectors with the highest numbers of profit warnings in Q3 2025 were Software and Computer Services, with 10 warnings issued, followed by Construction and Materials, and Media – both with six.

Companies from the FTSE Retailers sector and FTSE Personal Care, Drug and Grocery sector, which includes supermarkets, issued nine warnings in total during the third quarter, the highest number since Q4 2023 (also nine) and the highest Q3 total since 2022.