EY-Parthenon’s latest Profit Warnings report notes that 22% of the UK’s listed construction and materials companies have now issued a profit warning so far this year.
The five profit warnings across the sector in the first three months of the year is the highest quarterly total since Q4 2023, during which there were six warnings.
EY-Parthenon partner Tom Watson said: “Despite market conditions for the construction sector showing clear signs of improvement in 2024, our latest data shows that structural weaknesses persist as fresh challenges continue to emerge. The increase in employer National Insurance contributions will further impact budgets already under pressure from a persistent shortage of skilled labour, while delays to contract start dates and project timelines place added strain.
“Navigating these challenges amidst the ongoing heightened economic uncertainty will require the agility to strategically adapt. Companies that can effectively manage risk, drive innovation and cultivate strong partnerships will be best positioned to succeed in this evolving construction landscape.”