In 2023, UK companies had a tough time with their profits, even worse than in 2008. Despite a slight improvement from the year before, they still faced challenges.
They struggled because deals took longer, costs went up, and interest rates caused issues. Companies were more worried about delays in spending and higher borrowing costs.
Some companies even had to warn about their profits multiple times in a year, showing how hard things were.
1. Record Levels
Over 18% of public firms issued profit warnings, marking a concerning trend.
2. Persistent Challenges
Despite a slight decrease from the previous year, 294 warnings were issued, signalling ongoing difficulties for businesses.
3. Primary Cause
Factors such as delayed contracts, increased costs, and the impact of higher interest rates were cited as primary reasons for the warnings.
4. Changing Trends
The data indicates a shift in warning causes, with rising costs declining while corporate spending delays and higher borrowing costs gained prominence.
5. Continued Struggles
39 listed companies issued their third or more consecutive warnings within a year, highlighting the enduring challenges in the business environment.
