The pressures of rising costs pushed the rate of company profit warnings to a two-year high in the three months to December.
There were 81 profit warnings from UK-listed firms during the quarter, 11% higher than a year earlier, according to figures by the consultancy EY. The retail and support services sectors dominated the ranks of companies missing their targets.
A third of general retailers issued profit warnings in 2017, hit by higher import costs from a weaker pound and flagging consumer confidence. The trend has continued this year, with high street stalwarts Debenhams and Mothercare reporting disappointing Christmas trading. Profit warnings in the first two weeks of January already exceed last year’s first quarter total for the sector, according to EY.
More than a fifth of support services firms issued warnings last year.