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British companies expect a rise in high prices, increased employment discounts and the continued decrease in production in obtaining profits in 2025, despite the government's assurances that they strongly follow growth -friendly policies.
New data showed on Monday that profit warnings from the UK listed companies were widespread last year.
One out of every five companies listed in the UK issued a profit warning in 2024, according to the search for the giant consulting arm in EYAT. It was distinguished by the highest percentage of London-listed companies that issued profit warnings within one year since the Covid-19 was rising in 2020-and the third in 25 years.
Over the past quarter of the last century, Ey-Parthenon said that terrorist attacks on September 11 and the Dotcom Sluk have witnessed greater proportions of companies listed in FTSE, as they issued profits warnings.
Last year, 274 profit warning was issued, according to the report, as 71 were issued in the fourth quarter. The data showed that delay or cancellation in the contract and the matter – mentioned in 34 % of the 2024 profit warnings – was the largest source of pressure on corporate profits. Meanwhile, the growing costs behind one in five of the profit warnings issued throughout the year were, according to EY researchers.
Luxurious car maker Aston Martinand Fashion House Burberry Home Builder Pervetry was among the London -listed companies that issued profit warnings last year. But some industries saw a particularly high flow for profit warnings in 2024, said Ey-Parthenon on Monday. 38 percent of the FTSE retailers lowering the profit guidelines last year, while 75 % of companies in the personal commodity sector have warned investors against their expectations.
Joe Robinson, the partner of Ey-Parthenon and Turnaround and Restructure Leader, said in a press statement on Monday that profit warnings associated with contracts and delay delay reached record levels in 2024, as companies clung to employment and investment.
She noted that although the pace of profit warnings had slightly eased in early 2025, more stakeholders in business “were looking at insolvency as a real option to find the best path forward.”
On Monday, Morgan Stanley reduced growth forecast for the year 2025 for the United Kingdom from 1.3 % to 0.9 %, noting the weakness of the emerging labor market and reduced unnecessary business spending. “We see significantly inclined risks to the downside,” the investment bank analysts said.
The recession in the output
In separate Data The Confederation of the British Industry (CBI) – which represents 170,000 companies in the United Kingdom – published that the private sector in the United Kingdom expected another decrease in production during the next three months, which could lead to a greater price increase and a decline in employment.
“The growth index in January showed that the private sector is expected to continue to contradict the activity during the first quarter of 2025, which extends a period of weakness that started in mid -2012,” the Central Bank of Iraq said in its report. “The story tells us that the mood among companies is cautious, as the feelings decreased in the wake of the budget.”
The Central Bank of Iraq said that companies expect the selling prices to rise in the first three months of 2025. At the same time, the organization's monthly services sector surveyed that employing intentions in the British Service Sector have been largely weakened.
The United Kingdom has been subjected to economic pressure in recent months, with a Flat economy and Emper Weight on companies. On the political front, fears remain for the financial policies of the labor government and its plans Raising taxes by 40 billion pounds (50 billion dollars) through a set of new policies. This rise includes the payments of the national Insurance owner (NI) – a profit tax – which was paid Warnings One of the companies that will be unlikely to face new workers will face.
The Central Bank of Iraq said that the high contributions of the employer Ni was one of the government advertisements to “hit companies significantly.”
The Industry Authority said: “(This) led to the review of the budgets in a short notice and calibration of their response to measures: For example, raising prices to pass additional costs for customers, reducing investment plans and reducing the number of employees to reduce expenditures.”
Constant pessimism
Many business leaders, including me, were looking at the United States with envy, where their economy is expected to grow this year, while we see growth (minimum).
Matt Collingod
Vique Group, Management Director
(The government) I woke up late to the fact that they need to send a positive message about the future outlook, but this seems to be a case to try to close the gate after the horse withdraws, and requires procedures instead of words, and he said in the comments via e -mail: “Although the budget position is It does not give them a lot of maneuvering. “
“At the present time, it is difficult to know where some good news will come from the UK's economy, although England's banking price discounts must provide some support.”
Low confidence in business is another factor that will reach employment in 2025, according to Matt Collingod, Managing Director of British Employment Company VIQU Group.
He said via e -mail: “In our talks with clients throughout the United Kingdom, many organizations are not looking to employ them, and may reduce the number of employees,” he said via e -mail. “Many business leaders, including me, have looked at the United States with envy, where their economy is expected to grow this year, while we are witnessing growth (minimum).”
CNBC, CEO and co -founder of the British Technologies data data, told CNBC as a government budget as a “massacre of companies.”
“With the high taxes, national insurance contributions raised and more employment directions for compliance, is it surprising that business leaders are pessimistic about next year?” He said in an email.
Meanwhile, Rick Smith, founder and director of commercial consulting in the United Kingdom Forbes Burton, said that new government policies “seem to accumulate on many companies that are already struggling to stay standing on his feet.”
“I am confident of the year 2025, but unfortunately, this does not preach good for UK companies as a whole,” he said. “Since we are dealing with the company's qualifiers, we have seen a significant increase in work over the past few years, and we expect that we will see a greater closing increase to address this year.”
