Warning of significant profit decline issued to investors by nine Yorkshire companies

The number of Q3 profit warnings in the region was also up from the seven warnings issued in Q2 2022 and represents the highest quarterly total of profit warnings issued by companies in Yorkshire since Q2 2020.

A profit warning is issued to warn investors of a significant decline in profit for the coming quarter.

Tim Vance, EY-Parthenon UK&I turnaround and restructuring partner in Yorkshire, said: “The number of profit warnings issued in Yorkshire has seen a significant year-on-year climb, as well as a more modest quarter-on-quarter increase.

"Companies across the region operating in the industrial and consumer-facing sectors have been under increasing pressure from a range of economic headwinds including, but not limited to, rising inflation, supply chain disruption, and falling consumer confidence.

“The complex and challenging macroeconomic landscape and an uncertain political environment at home and abroad will put an even greater emphasis on certain sectors improving their performance in the ‘golden quarter’ of Q4 when there are usually higher levels of consumer spending.

"The ability to pass on inflation through price increases to customers will be critical to defend margins, while tight management of working capital will be important in managing liquidity.”

Consumer-facing and industrial sectors saw the region’s highest number of profit warnings in Q3, as cost-of-living pressures continued to squeeze spending habits and rising business costs created further challenges for companies.

Nationally, profit warnings issued by UK-listed companies in Q3 2022 reached their highest third-quarter total since 2008.

A total of 86 profit warnings were issued between July and September 2022, compared to 51 in the same period of 2021, an increase of 69% and a 34% increase from Q2 2022 when 64 warnings were issued.