A woman walks along Waterloo Bridge past the City of London skyline, the capital’s financial district, as the sky clears following several weeks of mostly gloomy weather. (Photo by Vuk Valcic/SOPA Images/LightRocket via Getty Images)
Sopa Images | Lightrocket | Getty Images
British businesses are expecting more price rises, further hiring cutbacks and continued output declines to weigh on profits in 2025, despite assurances from the government that it is aggressively pursuing growth-friendly policies.
Profit warnings from companies listed in the U.K. were rife last year, new data showed on Monday.
One in five U.K.-listed companies issued a profit warning in 2024, according to research from accounting giant EY’s consulting arm. It marked the highest proportion of London-listed firms issuing profit warnings in one year since the height of the Covid-19 pandemic in 2020 — and the third highest in 25 years.
Over the past quarter century, only 2020 and 2001, when the Sept. 11 terrorist attacks and the dotcom bubble weighed on markets, saw bigger percentages of FTSE-listed firms issuing profit warnings, EY-Parthenon said.
Last year, 274 profit warnings were issued, according to the report, with 71 issued in the fourth quarter. Contract and order delays or cancellations — cited in 34% of 2024’s profit warnings — were the biggest source of pressure on corporate profits, the data showed. Meanwhile, increasing costs were behind one in five of the profit warnings issued throughout the year, according to EY researchers.
Luxury car maker Aston Martin, fashion house Burberry and home builder Vistry were among the London-listed companies to issue profit warnings last year. But certain industries saw a particularly high influx of profit warnings in 2024, EY-Parthenon said on Monday. Thirty-eight percent of FTSE-listed retailers cut their profit guidance last year, while 75% of companies in the personal goods sector cautioned investors about their profit outlook.
Jo Robinson, EY-Parthenon Partner and UK&I turnaround and restructuring strategy leader, said in a news release on Monday that profit warnings linked to contract and spending delays hit record levels in 2024, as businesses held back from recruitment and investment.
She noted that while the pace of profit warnings had eased slightly in early 2025, more business stakeholders were “viewing insolvency processes as a real option in finding the best path forward.”
On Monday, Morgan Stanley downgraded its 2025 growth outlook for the U.K. from 1.3% to 0.9%, citing emerging labor market weakness and non-essential business spend cuts. “We see risks as tilted heavily to the downside,” the investment bank’s analysts said.
Slump in output
In separate data published Monday, the Confederation of British Industry (CBI) — which represents 170,000 U.K. firms — said the U.K.’s private sector was expecting “another significant fall” in output over the coming three months that could lead to more price increases and a decline in hiring.
“January’s Growth Indicator showed that the private sector expects the downturn in activity to continue through the first quarter of 2025, extending a period of weakness that began in mid-2022,” the CBI said in its report. “Anecdote tells us that the mood among businesses is cautious, with sentiment having dipped in the aftermath of the Budget.”
The CBI said businesses expect selling prices will rise in the first three months of 2025. Meanwhile, the organization’s monthly Services Sector Survey showed hiring intentions in the British services sector had weakened significantly.
The U.K. has come under economic pressure in recent months, with a flatlining economy and sticky inflation weighing on businesses. On the political front, concerns are lingering about the Labour government’s fiscal policies and plans to raise taxes by £40 billion ($50 billion) through a raft of new policies. These include a hike in employer National Insurance (NI) payments — a tax on earnings — that has prompted warnings from businesses that they will be less likely to take on new workers.
The CBI said that the rise in employer NI contributions had been one of the government announcements to “hit firms significantly.”
“[This] has resulted in businesses reviewing budgets at short notice and calibrating their response to the measures: for example, raising prices to pass on additional costs to clients, trimming investment plans and cutting headcount to reduce expenses,” the industry body said.
Persistent pessimism
Many business leaders, myself included, have been looking at the U.S. with envy as their economy is projected to grow this year, whilst we are seeing [minimal] growth.
Matt Collingwood
VIQU Group, managing director
“[The government] has belatedly woken up to the fact that they need to send a positive message on the outlook, but this looks to be a case of trying to shut the gate after the horse has bolted, and requires actions rather than words, though the budget position does not give them much room for manoeuvre,” he said in emailed comments.
“For the time being, it is difficult to see where some genuinely good news for the U.K. economy is going to come from, though gradual Bank of England rate cuts should provide some support.”
Low business confidence is another factor that will hit hiring in 2025, according to Matt Collingwood, managing director of British recruitment firm VIQU Group.
“In our conversations with clients across the U.K., many organizations are not looking to hire, and may even reduce their headcount,” he said via email. “Many business leaders, myself included, have been looking at the U.S. with envy as their economy is projected to grow this year, whilst we are seeing [minimal] growth.”
Michael Queenan, CEO and co-founder of British tech data firm Nephos Technologies, told CNBC he viewed the government’s budget as a “massacre for businesses.”
“With higher taxes, raised National Insurance contributions and more employment directives to comply with, is it surprising that business leaders may be feeling pessimistic about the year ahead?” he said in an email.
Meanwhile, Rick Smith, founder and managing director of U.K. business consultancy Forbes Burton, said new government policies “look set to pile the misery on for many companies that are already struggling to stay afloat.”
“I’m confident of a strong 2025, but unfortunately, that doesn’t bode well for U.K. businesses as a whole,” he said. “Because we deal in company liquidations, we’ve seen a large increase in work over the last few years, and we fully expect to see an even bigger surge in closures to tackle this year.”
ADVERTISEMENT:
Hai, sobat pengemar slots pernahkah mendengar istilah “slot gacor”? Kalau belum, bersiaplah jatuh hati dengan konsep ini. raja slot adalah mesin slot yang sering kasih kemenangan. Ya, slot-slot ini bisa dikatakan sebagai andalannya tuk bawa come back cuan. tapi, gimana sih
tekniknya nemuin slot gaco yang tepat? Santuy Bro and Sis, kita bahas santai aja di tempat ini
Games tergaco saat sekarang satu-satunya di Indonesia yaitu yang menyediakan return terbaik
Daftarkanlah hanya di :
Informasi mengenai KING SLOT, Segera Daftar Bersama king selot terbaik dan terpercaya no satu di Indonesia. Boleh mendaftar melalui sini king slot serta memberikan hasil kembali yang paling tinggi saat sekarang ini hanyalah KING SLOT atau Raja slot paling gacor, gilak dan gaco saat sekarang di Indonesia melalui program return tinggi di kingselot serta pg king slot
slot demo gacor
slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun demo slot gacor
akun demo slot gacor permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun slot demo gacor
akun slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun demo slot pragmatic
akun demo slot pragmatic permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun slot demo pragmatic
akun slot demo pragmatic permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun slot demo
akun slot demo permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
akun demo slot
akun demo slot permainan paling top dan garansi imbal balik hasil besar bersama kdwapp.com
slot demo gacor
slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun demo slot gacor
akun demo slot gacor permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun slot demo gacor
akun slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun demo slot pragmatic
akun demo slot pragmatic permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun slot demo pragmatic
akun slot demo pragmatic permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun slot demo
akun slot demo permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
akun demo slot
akun demo slot permainan paling top dan garansi imbal balik hasil besar bersama jebswagstore.com
slot demo gacor
slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun demo slot gacor
akun demo slot gacor permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun slot demo gacor
akun slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun demo slot pragmatic
akun demo slot pragmatic permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun slot demo pragmatic
akun slot demo pragmatic permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun slot demo
akun slot demo permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
akun demo slot
akun demo slot permainan paling top dan garansi imbal balik hasil besar bersama demoslotgacor.pro
slot demo gacor
slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun demo slot gacor
akun demo slot gacor permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun slot demo gacor
akun slot demo gacor permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun demo slot pragmatic
akun demo slot pragmatic permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun slot demo pragmatic
akun slot demo pragmatic permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun slot demo
akun slot demo permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
akun demo slot
akun demo slot permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
situs slot terbaru
situs slot terbaru permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
slot terbaru
slot terbaru permainan paling top dan garansi imbal balik hasil besar bersama situsslotterbaru.net
soda96 permainan paling top dan garansi imbal balik hasil besar bersama soda96.com
sparta88 permainan paling top dan garansi imbal balik hasil besar bersama sparta88.biz
sugesbola88 permainan paling top dan garansi imbal balik hasil besar bersama sugesbola88.org
tektok7777 permainan paling top dan garansi imbal balik hasil besar bersama tektok7777.com
tektok88 permainan paling top dan garansi imbal balik hasil besar bersama tektok88.biz
toinktoto88 permainan paling top dan garansi imbal balik hasil besar bersama toinktoto88.com
tokek888slot permainan paling top dan garansi imbal balik hasil besar bersama tokek888slot.com
topslot888 permainan paling top dan garansi imbal balik hasil besar bersama topslot888.biz
tuanslot888 permainan paling top dan garansi imbal balik hasil besar bersama tuanslot888.club
uang88 permainan paling top dan garansi imbal balik hasil besar bersama uang88.biz
uang8888 permainan paling top dan garansi imbal balik hasil besar bersama uang8888.com
userslot88 permainan paling top dan garansi imbal balik hasil besar bersama userslot88.info
uus88 permainan paling top dan garansi imbal balik hasil besar bersama uus88.biz
waslot88 permainan paling top dan garansi imbal balik hasil besar bersama waslot88.asia
wayantogel88 permainan paling top dan garansi imbal balik hasil besar bersama wayantogel88.com
zona666 permainan paling top dan garansi imbal balik hasil besar bersama zona666.biz
zona88 permainan paling top dan garansi imbal balik hasil besar bersama zona88.biz
slot96 permainan paling top dan garansi imbal balik hasil besar bersama slot96.biz
arjuna69 permainan paling top dan garansi imbal balik hasil besar bersama arjuna69.com
hqtoto88 permainan paling top dan garansi imbal balik hasil besar bersama hqtoto88.com
bangshun88 permainan paling top dan garansi imbal balik hasil besar bersama bangshun88.com
btc999 permainan paling top dan garansi imbal balik hasil besar bersama btc999.org
supraslot888 permainan paling top dan garansi imbal balik hasil besar bersama supraslot888.net
sortoto88 permainan paling top dan garansi imbal balik hasil besar bersama sortoto88.net
logamtoto88 permainan paling top dan garansi imbal balik hasil besar bersama logamtoto88.net
goslot777 permainan paling top dan garansi imbal balik hasil besar bersama goslot777.info
gebyar88 permainan paling top dan garansi imbal balik hasil besar bersama gebyar88.biz
botak88 permainan paling top dan garansi imbal balik hasil besar bersama botak88.biz
ibis88 permainan paling top dan garansi imbal balik hasil besar bersama ibis88.asia
autobot777slot permainan paling top dan garansi imbal balik hasil besar bersama autobot777slot.com
jwmarriott88 permainan paling top dan garansi imbal balik hasil besar bersama jwmarriott88.com
reddoorz88 permainan paling top dan garansi imbal balik hasil besar bersama reddoorz88.com
hotelharris88 permainan paling top dan garansi imbal balik hasil besar bersama hotelharris88.com
novotel88 permainan paling top dan garansi imbal balik hasil besar bersama novotel88.com
orientalplay88 permainan paling top dan garansi imbal balik hasil besar bersama orientalplay88.com
oyo88 permainan paling top dan garansi imbal balik hasil besar bersama oyo88.live
agoda88 permainan paling top dan garansi imbal balik hasil besar bersama agoda88.asia
tiket88 permainan paling top dan garansi imbal balik hasil besar bersama tiket88.asia
santika88 permainan paling top dan garansi imbal balik hasil besar bersama santika88.org
grandaston88 permainan paling top dan garansi imbal balik hasil besar bersama grandaston88.com
booking88 permainan paling top dan garansi imbal balik hasil besar bersama booking88.org
grandmercure88 permainan paling top dan garansi imbal balik hasil besar bersama grandmercure88.com
tripadvisor88 permainan paling top dan garansi imbal balik hasil besar bersama tripadvisor88.com
hotelmulia88 permainan paling top dan garansi imbal balik hasil besar bersama hotelmulia88.com
aryaduta88 permainan paling top dan garansi imbal balik hasil besar bersama aryaduta88.com
shangrila88 permainan paling top dan garansi imbal balik hasil besar bersama shangrila88.com
holidayinn88 permainan paling top dan garansi imbal balik hasil besar bersama holidayinn88.com
antam88 permainan paling top dan garansi imbal balik hasil besar bersama antam88.info
