According to business consultants EY the number of profit warnings that has been posted by publically listed companies within the first quarter of 2017 has now reached 75.
FTSE sectors who issued the most profit warnings were 5 for software and computer services, 5 for non-life insurance, 8 for travel and leisure and 11 warnings for support services.
Improved global economy has helped Industrial and commodity profit warnings to significantly fall since 2015 however, the impact of the weak pound along with rising pricing pressures loom large, according to the report.
28 per cent of profit warnings cited contract delay or cancellations, whilst 28 per cent cited pressures on prices and rising costs compared to just 15 per cent in 2016.
Alan Hudson of EY said: “Improving global growth and the positive impact of a weaker pound on exports, combined with falling expectations in stressed areas, should limit the number of profit warnings in the near-term.”
“However, increased overheads, political and regulatory change, and digital disruption are piling pressure on sectors with long-standing structural issues, especially in consumer and business services.”
“Periods of rapid change often leave companies behind and the next few years are unlikely to prove an exception.”