The number of profit warnings in the sector fell from 13 in the first quarter of this year, to nine in quarter two, according to research by Ernst and Young. This figure is also down on the previous year, which recorded 15 warnings in the sector for the same period.

Warnings in the technology hardware and equipment sector have also declined, with just three profit warnings in quarter two, compared to seven in the previous quarter.

James Bennet, technology director at Ernst and Young, said: “One of the reasons why the number has dropped is that most organisations have been having quite a tough period for the last 18 months and so a lot of the bad news is already out in the market place and technology companies would appear to have got better forecasting in place.”

“Whilst the reduction in the number of profit warnings is certainly a positive improvement, this should not take away the challenging market conditions that technology firms are facing at the moment.”

Overall, profit warnings from all sectors in the UK rose significantly in the second quarter with an 11 percent increase from last year, the highest figure for this period since 2001.