UK Listed Companies Issue Record 65 Profit Warnings

UK-listed companies issued 65 profit warnings in the three months ending September, marking the highest level in two years. Analysis from EY-Parthenon shows that 38% of these warnings attributed rising costs to the conflict in the Middle East and the subsequent energy shock.

The household goods and home construction sectors experienced the most significant impact. Listed housebuilders issued 14 warnings in 2026, a figure that surpasses the peak seen during the 2008 financial crisis. This downturn coincides with data from Rightmove showing a 0.1% decline in house prices over the past year.

In response, John Healey is preparing an October 28 budget that aims to provide "breathing space" for businesses and households. The plan includes raising the business rate payment threshold for small companies from £12,000 to £18,000. However, Healey noted that high borrowing costs and limited government resources restrict the state's capacity for further intervention. Meanwhile, the Trades Union Congress has urged the government to implement a cost of living support package funded by increased taxes on banking and wealth.