According to a new research, the total number of profit warnings by firms in the UK has fallen to 255 warnings in 2013, which is much lower than 287 profit warnings issued a year earlier.

The research showed that the number of profit warnings fell to its lowest level in three years even as downgrades increased in the previous year. The accountancy firm EY said that UK-quoted companies had issued 255 warnings in 2013, compared with 287 in 2012. The report also showed that the fourth quarter of 2013 recorded an increase of 30 per cent to73 compared to the previous quarter.

The company said that the concerns relating to the global economic growth affected the companies as downgrades continued in the fourth quarter of the previous year. Support services recorded the highest number of profit warnings during the fourth quarter at 14, software and computer services with seven and aerospace and defence and media and technology, with five.

The higher pound and indications of higher interest rates has resulted in a higher number of profit warnings during this year.