It comes as greater borrowing prices and a more durable gross sales surroundings have weighed closely on companies.
Companies listed on the London Stock Exchange issued 66 revenue warnings between April and June, EY-Parthenon revealed in its newest report.
It refers to official statements from corporations whose shares are listed on the inventory trade that full-year income shall be materially beneath expectations.
The determine marks the best second-quarter complete in three years, when warnings soared to 166 within the aftermath of the Covid pandemic in 2020.
Furthermore, 17.9% of all UK-listed companies have lowered their revenue expectations previously 12 months, the best proportion exterior the pandemic because the 2008 monetary disaster, the report revealed.
The sustained rise in revenue warnings during the last two years displays the extraordinary mixture of challenges confronted by UK companies over that timeframe
Businesses are arising in opposition to excessive ranges of inflation and rising rates of interest, which has made it costlier to borrow.
Changing credit score circumstances accounted for a fifth of revenue warnings through the quarter.
Falling gross sales have been cited in a considerable 59% of complete warnings, as struggling companies confronted waning demand amongst shoppers and prospects experiencing greater residing prices.
There was additionally an uplift in listed corporations issuing a number of revenue warnings, with 36 corporations getting into the three-warning “danger zone” within the final 12 months, EY-Parthenon mentioned.
The evaluation discovered that, of these corporations which haven’t already been compelled to de-list after issuing three revenue warnings, a mixed debt stage of £2.8 billion is due within the subsequent two years.
The mixed debt of corporations which have issued two warnings over the previous 12 months hit £7.8 billion, it revealed.
Jo Robinson, a companion at EY-Parthenon, mentioned: “The sustained rise in profit warnings over the last two years reflects the extraordinary mix of challenges faced by UK businesses over that timeframe.
“Rising interest rates have significantly changed credit conditions for companies that need to refinance, and businesses have started to feel the effect of a more expensive borrowing environment, especially in sectors where credit availability has been a key driver of activity.”
Companies throughout totally different sectors have cautioned traders over their monetary ends in latest months.
AIM-listed Hotel Chocolat issued its second revenue warning in two months final month after seeing decrease gross sales than it anticipated through the essential Easter interval.
Recruitment agency Robert Walters additionally warned over its full-year income in June, after downgrading its earlier 12 months’s ends in January, having confronted a weakening jobs market and decrease candidate confidence.
Meanwhile, trend retailer Superdry mentioned it has been in talks over an fairness increase in a bid to shore up its steadiness sheet within the face of tough buying and selling, on high of efforts to slash prices throughout the enterprise.
The agency issued a revenue warning for the second time this 12 months because of worse-than-expected gross sales.
