A woman passed the London Skyline in the financial district of the capital along the Waterloo Bridge. With the weather in the weather, the weather was fine and the sky was fine. (VUK VALCIC/SOPA image/lightrocket through Getty image)
SOPA image | Lightrocket | Getty image
Although the government guarantees that British companies are expected to have more prices to rise, further cutting and continuous output will reduce profits in 2025.
New data shows on Monday that the profit warning of listed companies in the UK last year was prevalent.
According to the research of the accounting giant EY Consultation Department, one -fifth of the company listed in the UK issued a profit warning in 2024. It marks the highest proportion of London listed companies that have issued profits in the year since the COVID-19-19 popular in 2020, and the third highest in 25 years.
EY-PARTHENON said that in the past quarter century, only 2020 and 2001, when the terrorist attacks and Internet bubbles on September 11 have hit the market in the market, and the proportion of FTSE listed companies with profit warnings is more big.
The report stated that last year, 274 profit warnings issued and 71 were issued in the fourth quarter. Data show that contracts and orders are delayed or canceled (34 % of the profit warning in 2024 are cited) is the largest source of the company’s profit pressure. At the same time, according to EY researchers, the increase in costs lags behind one -fifth of the profit warning issued throughout the year.
Luxury car manufacturer Aston Martin,,,,, Fashion House Burberry One of London listed companies released last year. EY-PARTHENON said on Monday, but some industries saw particularly high profit warnings in 2024. Last year, 38 % of the retailers listed on FTSE cut their profit guidance, and 75 % of the companies in the personal commodity industry warned investors to have their profit prospects.
EY-PARTHENON partner and UK & I Turnaround and CommunTructruction Strateger Jo Robinson said in a press release on Monday that the profit warning related to contract and expenditure delays reached a record level in 2024 because companies prevented recruitment and investment.
She pointed out that although the speed warning speed in early 2025 was slightly alleviated, more and more commercial interests “regarded the bankruptcy process as the real choice to find the best way forward.”
On Monday, Morgan Stanley reduced the weakness of the emerging labor market and non -essential commercial expenditure to reduce its growth prospect of Britain in 2025 from 1.3 % to 0.9 % in 2025. Analysts of investment banks said: “We think risks tend to be unfavorable.”
Output down
Alone data The British Industry Federation (CBI) published on Monday represented 170,000 British companies. He said that the British private sector is expected to be “another major decline” in the next three months, which may lead Price rise and recruitment decline.
The CBI said in its report: “The growth indicator in January shows that the decline in the predicting activities of the private sector will last until the first quarter of 2025, extending the weaknesses began in the mid -2022.” Careful mood, emotional coming after the budget. “
CBI said that the company’s expected sales price will rise in the first three months of 2025. At the same time, the organization’s monthly service department survey showed that the recruitment intention of the British service department has been greatly weakened.
Britain has suffered economic pressure in recent months. Unified economy and Viscous inflation Weigh the enterprise. In terms of politics, people’s concerns about the Labor government’s fiscal policy and plans are continuing Increase taxation of 40 billion pounds ($ 50 billion) Through a series of new policies. Among them, the hiking of the employer’s national insurance (NI) payment-income tax-has prompted warn From the company, they are unlikely to take over the new workers.
The CBI said that the rise in employer NI donations has always been one of the government’s announcements to the “significant blow to the company.”
The industry agency said: “(This) has led the enterprise to review the budget and calibrate its response to measures in a short period of time: for example, increase the price to pass additional costs to customers, trim investment plans and reduce expenditure to reduce expenditure.”
Continuous pessimism
Many corporate leaders (including me) have been jealous of the United States because their economy is expected to grow this year this year, and we see (minimum) growth.
Matt Coringwood
VIQU Group, General Managing Directors
“(Government) has been late to awaken the fact that they need to convey positive information in the prospects, but this seems to be a situation where the door is trying to close the door after the horse nut. Provide them with too much operating space, “he said in an email comment.
“For the time being, it is difficult to see where the real good news of the British economy comes from, although the tax reduction rate of the Bank of England should provide some support.”
Matt Collingwood, managing director of the British recruitment company VIQU Group, said low business confidence is another factor recruited in 2025.
He said through email: “In dialogue with customers from all over the UK, many organizations do not want to hire, and may even reduce their employees.” “Many business leaders, including me, have been watching the United States jealous. The economy is expected to grow economic growth this year, and we see (minimum) growth. “
Michael Queenan, chief executive and co -founder of the British Technology Data Company Nephos Technologies, told CNBC that he regarded government budget as a “corporate massacre”.
“With higher taxes, the business leaders may be pessimistic about the national insurance donation and more employment instructions. Is it surprising that this will be pessimistic about the next year?” He said in an email.
At the same time, Rick Smith, the founder and general managing director of the British business consulting company Forbes Burton, said that the new government policy “seems to be painful for many companies that are already working hard to maintain their livelihoods.”
He said: “I am full of confidence in the powerful people in 2025, but unfortunately, for the entire British company, this is not a good sign.” “Because we have dealt with the company’s liquidation, our work has increased significantly in the past few years. We completely hope that this year’s closed situation will be greater. “
