Analysis by EY reveals that tariffs and trade disruptions caused half of the profit warnings issued by UK-listed companies in April, with share prices tumbling on announcement days and several major firms facing uncertain futures amid volatile global trade conditions.
A recent analysis by accountancy firm EY has revealed that half of the profit warnings issued by UK-listed companies in April were directly linked to tariffs and the broader impact of global trade disruptions. The findings show a total of 26 profit warnings for the month, an increase from 21 during the same period last year.
Among these warnings, 13 specifically mentioned tariffs as a contributing factor. On average, companies that announced profit warnings experienced a significant drop in their share prices, with a typical decline of 19 per cent on the day of the announcement. In the first quarter of this year, 62 profit warnings were reported, marking an 11 per cent decrease compared to the same period in 2024. This decline, however, occurred before the introduction of former US President Donald Trump’s “Liberation Day” tariffs, which were announced at the beginning of April.
Notable UK-listed firms affected include TT Electronics, a manufacturer, and Clarkson, a leading ship broking company. In addition, the Character Group, known for its Peppa Pig toys, has opted to withdraw its profit guidance due to the prevailing uncertainties associated with tariffs and trade conditions.
The increases in profit warnings could indicate potential challenges for the UK economy as companies grapple with external pressures from international trade policies.
Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
7
Notes:
Data references April 2024 figures, with Q1 comparisons to 2024 (unclear if typo or future projection). Trump’s 'Liberation Day' tariffs are presented as April 2024 development but lack independent verification of announcement timing.
Quotes check
Score:
8
Notes:
No direct quotes included, but specific named sources (EY, TT Electronics, Clarkson, Character Group) are verifiable entities. No original quote validation required.
Source reliability
Score:
6
Notes:
Narrative originates from Daily Mail, which lacks the editorial rigour of Reuters/BBC-tier outlets. EY’s involvement adds credibility but requires corroboration.
Plausability check
Score:
8
Notes:
Tariff-related disruptions align with common economic pressures. Specific company examples (TT Electronics, Clarkson) match sectors vulnerable to trade policies. First-quarter decline vs April spike warrants monitoring.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
Substantiated core claims about profit warnings but requires verification of tariff implementation timeline and Q1 2024 data consistency. Company-specific details appear credible.
