Profit warnings on the rise

The number of profit warnings by British listed companies increased by a higher-than-expected 40% last year.

Companies announced 294 warnings during the year, up from 210 in 2003, according to a survey by accountancy group Ernst & Young.

Ernst & Young said most companies issuing warnings had blamed worse-than-expected sales and difficult trading conditions for their problems, indicating that interest rate rises and the slowing housing market had affected consumer confidence.