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UK profit warnings spur fears of insolvency wave as state support ‘cliff edge’ nears

EY says 'firms could be tested to their ultimate limit' when Covid-19 support is removed

The number of UK listed companies issuing their third profit warning within a 12-month period has nearly doubled in the last year
The number of UK listed companies issuing their third profit warning within a 12-month period has nearly doubled in the last year Photo: Getty Images

The number of UK listed companies issuing their third profit warning within a 12-month period has nearly doubled in the last year, stoking fears of a wave of insolvencies on the horizon.

The figures from accountancy firm EY show 63 listed companies issued at least their third profit warning between March 2020 and March 2021 — almost double the 2019 total of 32.

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