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British companies expect more price increases, additionally employing cutouts and further productions fall from profits in 2025, despite the government's assurances that it aggressively strives for growth -friendly policy.
The warnings about profits from the companies mentioned in Great Britain were common last year, showed new data on Monday.
According to research from Research Consulting Consulting, the company with stock exchanges in Great Britain issued a profit warning in 2024. This meant the highest percentage of companies listed on the London stock exchange, which issued profit warnings within one year from the summit of Covid-19 Pandemia in 2020. -and the third highest in 25 years.
Over the past quarter, only in 2020 and 2001, when the terrorist attacks of September 11 and the dotcom bubble weighed in the markets, recorded a larger percentage of companies on the FTSE stock exchange issuing profit warnings, said Ey-Parton.
According to the report, 274 profit warnings were issued last year, with 71 issued in the fourth quarter. The data showed that delays or cancellation of orders – cited in 34% of profit warnings in 2024 – were the largest source of pressure on corporate profits. Meanwhile, the growing costs were in one out of five warnings of profits spent throughout the year, according to EY researchers.
Luxurious Aston Martin car manufacturerIN Burberry fashion house And home -made Vistry belonged to London companies that spend warnings about profits last year. But some industries recorded a particularly high influx of profit warnings in 2024, said EY-Parthenon on Monday. Thirty -eight percent of retail sellers with FTSE reduced their profits last year, while 75% of companies in the personal rights sector warned investors about their profit perspective.
Jo Robinson, EY-Parthenon Partner and leader of the UK I I strategy strategy strategy strategy strategy strategy strategy strategy strategy strategy strategy on Monday that the warnings about profits related to contracts and delay expenses achieve record levels in 2024, because companies stopped from recruitment and investment.
She noticed that although the pace of profit warnings was slightly decreased at the beginning of 2025, more interested parties “perceived the processes of insolvency as a real option to find the best path forward.”
On Monday, Morgan Stanley reduced growth prospects in 2025 for Great Britain from 1.3% to 0.9%, citing the emerging weakness of the labor market and unimportant cuts of business expenditure. “We see the risk as heavily tilted to the minus,” said analysts of the investment bank.
Output
In separate data The Confederation of the British Industry (CBI) published on Monday – which represents 170,000 British companies – said that the private sector in Great Britain is expecting a “another significant decline” of production in the next three months, which can lead to a greater price increase and decline in employment.
“The January growth indicator showed that the private sector expects the deterioration of the economic situation to the first quarter of 2025, extending the period of weakness, which began in mid-2022,” CBI said in his report. “Anecdot tells us that the mood among companies is cautious and the sentiment has immersed after the budget.”
CBI said that companies expect that sales prices would rise during the first three months of 2025. Meanwhile, the organization survey in the Service Sector in the organization showed that the intentions of employing in the British services sector have significantly weakened.
Great Britain has been under economic pressure in recent months, z flat economy AND sticky inflation Weighing for companies. On the political front, fears about the fiscal policy of the labor government and plans Raise taxes by 40 billion pounds ($ 50 billion) through a number of new rules. They include an increase in social insurance (Ni) – earnings tax – which caused it to promote warnings From companies that will be less likely that they will accept new employees.
CBI stated that the increase in the employer's contributions was one of the government's advertisements “significantly striking companies”.
“(This) resulted in that the companies have reviewed budgets in a short time and calibrated their reaction to funds: for example, raising prices to additional costs for customers, trimming investment plans and limiting the zone to reduce expenses,” said the industry authority.
Personal pessimism
Many business leaders, including, looked at the USA with jealousy, because it is expected that their economy will increase this year, while we see (minimal) growth.
Matt Collingwood
Viqu Group, managing director
“(Government) delayed the fact that they must send a positive message on the perspective, but it seems that this is a case of attempted closing the gate after screwing the horse and requires actions, not words, although the budget position does not give them much space for them maneuver, “he said in the comments e -Mail.
“For now, it is difficult to see where really good news comes from for the British economy, although gradual reductions of the bank of the Bank of England should provide some support.”
According to Matt Collingwood, managing director of the British recruitment company Viqu Group, low business trust is another factor that will achieve employment in 2025.
“In our conversations with clients in Great Britain, many organizations do not want to employ, and maybe even reduce the number of heads of the head,” he said e -Mail. “Many business leaders, including, looked at the US jealousy, because it is expected that their economy will increase this year, while we see (minimal) growth.”
Michael Queenan, general director and co -founder of the British technology company Nephos Technologies, told CNBC that he perceived the government's budget as a “massacre for companies”.
“With higher taxes, raised insurance premiums and more employment directives to follow the space, is it surprising that business leaders may feel pessimist next year?” He said -Mailu.
Meanwhile, Rick Smith, the founder and managing director of the British business advisor forbes Burton, said that new government policies “look like harassment of many companies that are already fighting to stay on the surface.”
“I am sure of a strong 2025, but unfortunately it does not bode well for British companies as a whole,” he said. “Because we have been liquidating the company, we have observed a large increase in work in the last few years and we are full of a greater closing increase this year.”