2 days ago
UK companies face record profit warnings amid geopolitical tensions
UK listed companies have issued a record level of warnings over geopolitical tensions as they face higher trade costs under the Trump administration.
The number of profit warnings issued by public companies rose by 20 per cent to 59 in the second quarter of 2025, according to research from EY, as concerns over international affairs mounted on businesses.
Government policy changes and geopolitical uncertainties were cited as a leading factor behind 46 per cent of warnings to investors, up from 4 per cent in the second quarter of 2024. EY stated this was the highest percentage recorded for companies citing geopolitical issues in more than 25 years of its reporting on profit warnings.
There was a notable uplift in profit warnings after the United States threatened to impose wide-ranging tariffs on imports in April. The number of such warnings rose by 24 per cent year-on-year to 26 in April, with half of those companies blaming tariff threats and US economic disruption for their financial difficulties.
