MASTER BDAILY SIZE-20.png
Tim Vance, EY-Parthenon UK&I turnaround and restructuring partner in Yorkshire

Warning signs ease across Yorkshire in report

Profit warnings from listed businesses in Yorkshire have fallen to their lowest level in more than three years, according to EY-Parthenon’s latest Profit Warnings report.

Just three warnings were issued across the region in the first quarter of 2025 – less than half the number recorded during the same period last year and the joint-lowest quarterly total since Q3 2021.

Tim Vance, EY-Parthenon UK&I turnaround and restructuring partner in Yorkshire, said: “Although the UK is facing a volatile economic outlook, businesses in Yorkshire continued to display encouraging resilience in the first quarter of 2025, with profit warnings down by more than 50 per cent year-on-year. 

“Given heightened levels of global trade disruption it is crucial that companies in the region are agile and prepared for a range of eventualities going forward.

“Scenario planning, stress testing, as well as and building operational and financial resilience will be a critical priority over the coming months. 

“On a positive note, it looks increasingly likely that interest rates will fall steadily across the remainder of 2025, which should provide a source of support to an otherwise uncertain business landscape.”

The trend mirrors a national decline, with 62 profit warnings issued by UK-listed companies in Q1, marking an 11 per cent year-on-year fall. 

But despite the dip, 18 per cent of listed firms across the UK have issued a warning in the past 12 months, underlining continued underlying pressures across key industries.

Contract delays and cancellations were the leading cause of warnings in Q1, cited by 40 per cent of affected companies – the highest level recorded in the report’s 25-year history.

Meanwhile, in April alone, half of all warnings were linked to global trade disruption and new tariffs, with average share price drops rising to 19 per cent.

Software and computer services led the sectors issuing the most warnings, followed by industrial support services and construction and materials.

Claire Gambles, EY-Parthenon turnaround and restructuring strategy partner, added: “UK companies have faced many challenges in recent years, but ongoing global trade disruption has the potential to bring even more substantial and far-reaching repercussions. 

“Demand and supply shocks from the pandemic and geopolitical events were significant but primarily cyclical disruptions, whereas major changes to international trade policy may have more enduring effects.

“Naturally, these changes won’t happen immediately, and companies will need to balance immediate responses, such as strengthening financial resilience, with strategic shifts, whether by reassessing supply chains and pricing models or exploring new global partnerships, to help respond to further uncertainty over the coming months.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →

Enjoy the read? Get Bdaily delivered.

Sign up to receive our popular Yorkshire & The Humber morning email for free.

* Occasional offers & updates from selected Bdaily partners

Our Partners