In the second quarter of 2025, UK listed firms issued a record 59 profit warnings, marking a 20 per cent increase from the previous quarter. Nearly half of these warnings cited geopolitical instability as a significant factor, in stark contrast to just 4 per cent the previous year. The Trump administration's tariff proposals contributed to heightened business anxiety and a notable spike in warnings. Industries such as industrial support services and retail were particularly affected, indicating broader concerns surrounding political instability and trade policy's impact on corporate strategy.
According to new data from EY, the second quarter of 2025 saw 59 profit warnings issued by UK listed firms— a 20 per cent rise on the previous quarter and the highest figure in years driven by global policy disruption.
At the heart of this turbulence are growing fears over international trade friction, most notably the threat of sweeping new tariffs announced by the Trump administration in April.
Jo Robinson, EY's turnaround and restructuring strategy leader, stated: "The latest profit warnings data reflects the scale of persistent uncertainty and how heavy it continues to weigh on UK businesses."
Industrial support services and retail companies were among the hardest hit, recording eight and four warnings respectively.
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