PROFIT warnings by listed companies in the region rose to a five-year high in the past three months, figures showed.

Stock market-listed companies in the North-East and Yorkshire made a total of 22 profit warnings in the third quarter, Ernst & Young said.

The figure is almost double that of the previous three months, when 12 warnings were made in the region, and well up on the nine warnings that were reported in the same quarter last year.

Ernst & Young said the warnings came as trading conditions facing all industries continued to be worse than expected.

Hunter Kelly, corporate restructuring partner at Ernst & Young in Leeds, said: "Sixty-six per cent of the profit warnings made nationally were from businesses with less than £200m turnover, of which the region has a greater proportion.

"However, given the performance in the North-East and Yorkshire I have concerns that management teams are not factoring good old northern caution into their plans and forecasts."

But he added: "Despite this jump in profit warnings we are certainly not seeing a knock-on increase in the number of insolvencies in the region.

"The private equity and debt markets remain buoyant, giving management within businesses which are experiencing difficulties more options for refinancing and recovery.

"I expect management in general will be more cautious with their plans going into 2007 and believe that the level of profit warnings should level out shortly."

Those in the IT and construction sector were the worst-hit across the UK, overall accounting for 34 of the 103 profit warnings.

Businesses blamed difficult market conditions. But, despite well-publicised problems on the High Street, only five general retailers issued warnings in the past three months - a 50 per cent drop on the previous quarter.