More listed companies are warning that they risk of breaking banking covenants, the agreements between lenders and companies where the borrower agrees to abide by certain financial and operational measures until their debt is repaid.

According to Big Four firm EY, nearly nine out of 10 profit warnings issued by UK listed companies in the last three weeks cited covid-19.

Since the start of 2020, 54 profit warnings – 25 in the last week alone – have blamed the impact of the virus for a material downgrade to their profit expectations, EY reported.

In just one example, high street giant Marks and Spencer on Friday said it had scrapped its dividend, slashed capital spending and warned that disruption from covid-19 may last beyond the autumn.