Yorkshire firms ‘resilient’ as profit warnings reduce

The number of profit warnings issued by listed companies in Yorkshire fell significantly in 2024, reflecting growing business resilience despite economic challenges.

According to EY-Parthenon’s latest Profit Warnings report, Yorkshire firms issued 19 warnings last year, a 42 per cent drop from 33 in 2023. 

The final quarter of 2024 saw just three warnings, marking a 50 per cent year-on-year decline and the lowest Q4 total since 2019.

Almost half of the region’s warnings came from FTSE Industrials companies, a trend mirrored across the UK. 

Tim Vance, EY-Parthenon UK&I turnaround and restructuring partner in Yorkshire, said: “Despite ongoing economic headwinds including sticky inflation, persistently high interest rates and geopolitical tensions, businesses in Yorkshire displayed resilience throughout 2024, with profit warnings down by almost half year-on-year. 

“This is testament to the resolve of the listed businesses in the region, particularly as national warnings were only down marginally on 2023’s figures.”

Nationally, one in five UK-listed firms issued a profit warning, with contract delays and order cancellations cited as the leading cause in 34 per cent of cases.

Rising costs also contributed to nearly one in five warnings.

Despite the decline in Yorkshire, the UK as a whole saw 274 profit warnings in 2024, with the industrial and retail sectors among the hardest hit. 

Jo Robinson, EY-Parthenon partner and UK&I turnaround and restructuring strategy leader, added: “It’s clear that companies have faced an extraordinary succession of forecasting challenges since the pandemic, contending with interconnected disruptions to supply chains, material and energy costs, and the labour market, as well as higher interest rates. 

“2024 was also an exceptional year for global geopolitical uncertainty and policy upheaval, with a record level of profit warnings linked to contract and spending delays as businesses held back from recruitment and investment. 

“As a result, companies’ forecasting strategies need to respond to both short-term policy changes and deeper structural issues.

“While the pace of profit warnings has eased slightly in early 2025, we’ve seen the recruitment sector continue to grapple with a downturn in activity across key geographies and sectors, before the increases in employer National Insurance Contributions and the National Living Wage take effect. 

“Across the board, the road ahead remains rocky with challenges around trade, geopolitics, interest rates, and more.”

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