UK company profit warnings surge as Iran war drives up costs

Profit warnings from London listed businesses reached the highest levels in nearly two years over the summer, as an energy shock brought on by the Iran war fuelled inflation. Businesses issued 65 profit warnings during the period, up from 59 in the second quarter, according to the latest analysis from EY. It also marked the largest number of warnings since the fourth quarter of 2024, when 71 were issued. Profit warnings are announcements to shareholders informing them that initial market forecasts on profit or earnings will not be met. Over half of companies blamed the rise on geopolitical uncertainty, with 38 per cent citing the impact of the ongoing conflict in the Middle East. Others pinned the rise on contract and order cancellation or delays, as well as weaker consumer confidence. Jo Robinson UK I financial restructuring leader at EY said the warnings showed the “variety of structural changes and companies” firms are being forced to navigate. “This is not a conventi