Some 449 London Stock Exchange-listed companies issued profit warnings in 2008, according to figures from Ernst & Young.

This is a seven-year high and a 17% increase on last year, the accountancy firm said, adding that 2009 is likely to be as bad or worse.

Restructuring partner Keith McGregor said this demonstrates the impact that the economic downturn is having on businesses across the country.

"It would be difficult to predict anything other than a deteriorating economic climate in the UK over the coming months," he remarked.

The publication of the figures follows several high profile collapses in the retail sector, with companies including Woolworths, MFI and Zavvi falling into administration.

Ernst & Young's figures show that 52 of the profit warnings issued in 2008 were from retail companies.

Figures from the British Retail Consortium show that high street retailers experienced their worst December on record in 2008, with like-for-like sales down 3.3%.