London (DPA)
A large number of British listed companies have warned that rising costs might hurt profits, according to a new report.
And the British AB Media agency reported that an increasing number of companies issued warnings regarding profits to shareholders and dealers, in order to mitigate the failure to achieve results similar to expectations.
43% of the listed companies warned that profits will be lower than expectations, and attributed this to higher costs due to higher commodity and energy prices.
This compares with only 27% of companies who had expected a decline in profits during the last three months of 2021. The war in Ukraine contributed to the sharp rise in the prices of commodities such as natural gas, which the World Bank warned might more than double in the next two years.
Concerns regarding the economy have prompted companies to adjust their forecasts to take into account rising inflation and the expected rise in commodity prices.
