Investors take fright as rising wages eat into company profits

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Wizz Air was among the companies to cut their profit forecasts yesterday Wizz Air was among the companies to cut their profit forecasts yesterdayALAMY

Hundreds of millions of pounds were wiped off the value of some of Britain’s largest public companies yesterday after a series of profit warnings.

G4S, the security services group, JD Wetherspoon, the pubs chain, and Wizz Air were among the listed companies to cut forecasts, while there were badly received updates from Sophos Group, the cybersecurity company, and Sportech, the online gambling company.

Shares in G4S fell by almost 18 per cent after it warned that annual profits would be flat this year as pressure from tight labour markets pushed up wages. It erased about £590 million from the outsourcer’s market value. JD Wetherspoon’s shares were down 13.2 per cent after it said that profits would be lower because of increasing salaries.

They were the…

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  • Transport
  • Investment
  • Economics