• Swindon & Wiltshire Economy
• Tuesday July 29 2025

Profit warnings issued by listed South West companies down in H1

Listed companies in the South West issued six profit warnings in the first half of 2025, four fewer than the same period last year, according to the latest EY-Parthenon Profit Warnings Report.

Companies in the region issued four warnings in Q2 2025, two more than the previous quarter, and the same number as Q2 2024.

Nationally, the number of profit warnings issued by UK-listed companies rose by 20 per cent year-on-year to 59 in Q2 2025, compared to 49 during the same period last year.

Over the last 12 months, nearly a fifth (19 per cent) of UK-listed businesses have issued at least one profit warning.

In the South West, warnings in the first half of 2025 were spread across a number of sectors. Companies operating in Basic Materials, Consumer Discretionary and Industrials all issued two warnings each.

Lucy Winterborne, EY-Parthenon turnaround and restructuring strategy partner in the South West, said: “The latest data reveals a nuanced picture for profit warnings among listed companies in the South West.

“While the region saw a reduction in the total number of warnings during the first half of 2025 compared to the previous year, the increase in warnings in Q2 highlights ongoing volatility.

“The rise to four warnings in Q2, doubling the count from the previous quarter, suggests that while some companies are managing to navigate challenges effectively, others are still grappling with sector-specific pressures.

“This mixed performance is mirrored nationally, where a significant uptick in profit warnings indicates that many UK-listed companies are facing headwinds.

“The distribution of warnings across various sectors, including Basic Materials, Consumer Discretionary, and Industrials, underscores the diverse challenges that businesses are encountering.

“This sectoral spread, coupled with the low overall numbers, suggests that while some firms are struggling, others may be adapting successfully to the current economic landscape.

“As we move forward, it will be essential for companies in the South West to remain vigilant and proactive in addressing the factors contributing to these warnings.

“Strategic agility will be key for those aiming to sustain growth and mitigate risks in an increasingly complex market environment.”

The leading factor behind profit warnings during the second quarter was policy change and geopolitical uncertainty, cited in nearly half (46 per cent) of warnings.

This marked a significant increase from just four per cent in Q2 2024, and the highest percentage recorded for this cause in more than 25 years of EY’s analysis.

The proportion of profit warnings to cite contract and order cancellations or delays in Q2 remained at a record 40 per cent.

One in three warnings (34 per cent) cited tariff-related impacts, including weaker demand, supply chain disruption, and exchange-rate volatility.