Profit warnings from UK-listed firms at highest level in two years as Iran war drives up costs
Summary
The number of profit warnings from UK-listed companies has reached its highest level in two years due to rising costs caused by the war in the Middle East. Ahead of the UK budget announcement, businesses are asking the government for support to help with higher fuel and energy expenses, while housebuilders are facing particular difficulties.Key Facts
- UK-listed companies issued 65 profit warnings in the three months ending September, the highest in two years.
- The war in the Middle East has increased fuel and energy costs, impacting many businesses.
- Chancellor John Healey plans budget measures to help small businesses, including raising the threshold for business rates from £12,000 to £18,000.
- Housebuilders have issued more profit warnings this year than during the 2008 financial crisis.
- House prices in the UK have fallen slightly by 0.1% over the last 12 months.
- Rising mortgage rates, now averaging 5.55% for two-year fixed loans, are increasing monthly payments and reducing home affordability.
- About 17% of UK-listed companies have issued at least one profit warning in the past year.
- The most common reasons for profit warnings are policy changes, geopolitical uncertainty, and rising costs from the conflict in the Middle East.
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