Yorkshire firms hold steady as profit warnings fall

Yorkshire firms remain “resilient” despite “challenging headwinds,” according to new findings.

Listed companies in Yorkshire issued seven profit warnings in the first half of 2025 – a drop of more than a third compared to the same period last year. 

According to EY-Parthenon’s latest Profit Warnings report, the region saw 36 per cent fewer warnings than in the first half of 2024, when eleven were recorded.

Three of the seven warnings came from companies in the FTSE Industrials super-sector – matching last year’s total and reflecting wider UK trends. 

Yorkshire firms issued four warnings in quarter two of 2025, the same number as in the second quarter of 2024, and a slight increase on the three recorded in quarter one this year.

Tim Vance, EY-Parthenon UK and Ireland turnaround and restructuring partner in Yorkshire, said: “The fall in profit warnings in Yorkshire in the first half of 2025 is testament to the region’s resilient business community, particularly given the challenging economic landscape.

“The Industrials FTSE super-sector saw the most warnings in Yorkshire during the first half of this year, which is in line with the wider UK trend, highlighting the challenging headwinds facing industrials companies.

“Despite a fall in warnings for listed companies in Yorkshire in the first half of the year, national warnings were up year-on-year in both Q2 and H1 as a whole.

“With the UK’s economic growth outlook continuing to appear relatively downbeat, and global trade market uncertainty likely to weigh on business investment, the second half of the year is unlikely to be without challenges.

“Forward planning, stress testing and optimising cash flow will therefore remain as important as ever for businesses in Yorkshire and beyond.”

Nationally, profit warnings ticked upwards in the first half of 2025. UK-listed companies issued 121 warnings in the first half of 2025, up from 119 last year. 

The second quarter alone saw 59 warnings, a 20 per cent rise year-on-year.

Policy changes and geopolitical uncertainty were cited in nearly half of all quarter two warnings – the highest level recorded in over 25 years of EY’s analysis. 

Contract delays, cancellations and tariff-related pressures also remained significant, pointing to continued volatility.

Industrials, software and retail businesses led the volume of UK warnings in quarter two, with nearly one in five listed firms having issued a warning over the past 12 months.

Jo Robinson, EY-Parthenon partner and UK and Ireland turnaround and restructuring strategy leader, added: “The latest profit warnings data reflects the scale of persistent uncertainty and how heavily it continues to weigh on UK businesses.

“While this uncertainty has been a recurring theme since mid-2024, it has intensified so far this year – driven largely by geopolitical tensions and policy shifts – compounding pressure on both earnings and forecasts.

“While the announcement of global tariffs has clearly played a part in amplifying uncertainty, they are just one factor among broader geopolitical and policy upheaval.

“These pressures are often interlinked and, combined, they are having a significant effect on companies’ confidence, decision-making and spending.

“Whether the rise in profit warnings is cyclical or structural remains to be seen, and we still expect earnings pressure to ebb and flow with the macroeconomic backdrop.

“As companies operate in a risk and forecasting environment that is challenging to navigate, they must adopt a measured, scenario-based approach that balances both agility and strategic clarity.”

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