Profit warnings in 2009 tailed off towards the end of the year, following an above average number in the first quarter, according to analysis from Ernst & Young.
Statistics from the accountancy giant highlight that there were 282 warnings issued across the year, representing a 37 per cent drop compared to 2008.
In the final three months of 2009, 50 profit warnings were issued, down 60 per cent year-on-year compared to the 126 issued in the same period in 2008.
Commenting on the data, Andrew Wollaston, a restructuring partner at Ernst & Young, said: "Given the depth of the slump, recovery has certainly come quicker than we might have anticipated. This rapid economic recuperation, along with previously depressed earnings forecasts, is helping companies beat expectations and keep profit warnings low."
He added that while this is good news for the UK economy, businesses should still be cautious as recovery in 2010 is likely to be "bumpy".
Last week, Ernst & Young's ITEM Club forecast predicted that 2010 will be challenging year for the UK.
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