The woman passes the Waterloo Bridge near the town of London, the financial district of the capital, while the sky is cleaned after a few weeks of mostly gloomy weather. (Photo Vuk Valcic/Sopa Images/Lightctics via Getty Images)
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British companies expect a higher price increase, additional employment of the reduction, and the continuation of production falls to profit in 2025, despite the assurances of the Government to aggressively implement the policies adapted to growth.
The profits of the companies listed in the UK were RIFE last year, new data showed on Monday.
One of the five companies with a list in the UK issued a profit alert in 2024, according to a study of the consultation of accounting diva EY. This was marked by the biggest share of companies listing in London, which are issued by profit warnings in one year since the height of the Coid-19 2020 pandemic, the third highest in 25 years.
In the past quarter of a century, only in 2020 and 2001, when terrorist attacks on September 11 and the bubbles of Dotc weakened in the markets, recorded a higher percentage of companies listing FTSE that issue profit warnings, said Ey-Parthenon.
Last year, 274 profit warnings were published, according to a report, with 71 published in the fourth quarter. Treaty delays and orders or cancellation – quoted in 34% of profit warnings from 2024. – were the largest source of pressure on corporate profits, data showed. In the meantime, increasing costs laged out at one of the five profit warnings published throughout the year, according to EY researchers.
Luxury Aston Martin car manufacturer,, Burberry fashion house And the builder of the Vissty House were among the companies on the list in London last year issued profit warnings. But certain industries saw a particularly high profit warning appeal in 2024, Ey-Parthenon said on Monday. Thirty-eight percent of the FTSE census reduced their guidelines for profit last year, while 75% of the companies in the personal goods sector alerted investors to their profit prospects.
Jo Robinson, Ey-Parthenon Partner and Strategy and Restructuring Leader in the UK and I, said in a statement on Monday that profit warnings are related to contract and spending delays at a record level in 2024, because companies are staying from employment and investment .
She noted that, although profit warnings, they slightly mitigated in the early 2025 years, more business stakeholders “viewed the Insolvency processes as a real option in finding the best path forward”.
On Monday, Morgan Stanley reduced its appearance for growth 2025. For the UK from 1.3% to 0.9%, citing the weakness of the emerging and reduction in business. “We see the risks very tilted to the negative side,” the investment bank analysts said.
Lowering at the exit
In separate data Posted on Monday, Confederation of the British Industry (CBI) – which represents 170,000 companies in the UK – said the private sector in the UK expected “another significant drop in” production in the next three months, which could lead to greater price increase and fall employment.
“The January Growth indicator showed that the private sector expects that the fall of activities will continue through the first quarter of 2025, extending the period of weakness that began in mid -2022,” the CBI report said. “The anecdote tells us that the mood among companies is caution, with the feelings that have been tired after the budget.”
CBI said companies expect sales prices to increase in the first three months of 2025. Meanwhile, a monthly organization sector research has shown that employment intentions in the British Services sector have weakened significantly.
The UK has been under economic pressure in recent months, with economics and sticky inflation weighing on companies. On the political front, concerns lingering on the fiscal policies of the Government and plans Collect tax for £ 40 billion ($ 50 billion) through the raft of new policies. They include increasing the payment of national employers’ insurance (ni) – earning tax – which has encouraged warnings Than companies that are less likely to download new workers.
CBI said that the increase in the employer’s contribution was not even one of the Government announcements for “significantly hit by companies”.
“[This] It resulted in companies to review the budgets in the short term and calibrated their response to measures: for example, increasing prices for additional costs to clients, pruning investment plans and reducing the number to reduce costs, “the industrial body said.
Persistent pessimism
Many business leaders, including me, were looking at the US with a envy because it is predicted that their economy will grow this year as we see [minimal] growth.
Matt Collingwood
Viqu Group, General Director
“[The government] The fact that they need to send a positive message about appearance has been late, but it seems to be the case of trying to close the door after the horse has scored and does not require actions, not words, although the budget position does not give them a lot of room for maneuver. ” , he said in the comments of E -today.
“For now, it’s hard to see where some of the true good news for the UK economy will come from, although the gradual reduction of the Bank of England rate should provide some support.”
Confidence with low business is another factor that will hit employment in 2025, according to Matt Collingwood, a British Employment Director General of Viqu Group.
“In our conversations with clients throughout the UK, many organizations do not want to hire and even can reduce their number,” he said via E -Star. “Many business leaders, including me, have been looking at the US with a envy because it is predicted that their economy will grow this year as we see [minimal] growth.”
Michael Queelan, executive director and co -founder of the British technology company Nephos Technologies, told CNBC that the Government’s budget was viewed as a “company massacre”.
“With higher taxes, collecting contributions for national insurance and more employment directives, is it surprising that business leaders may feel pessimistic about the year ahead?” said Ue -Student.
Meanwhile, Rick Smith, founder and CEO of British Business Counseling forbes Burton, said new government policies “look for a bunch of misery for many companies that are already trying to stay on the surface.”
“I am convinced of a strong 2025, but unfortunately, this is not good for the UK companies as a whole,” he said. “Since we are involved in the liquidation of the company, we have seen a great increase in the last few years, and we expect to see an even greater increase in closing this year.”
