HomeInsightsBlogBrexit – Have you considered the implications?


Blog // 11/02/2019

Brexit – Have you considered the implications?

With the imminent deadline of 29th March approaching, the level of concerns raised by businesses regarding Brexit is reaching its peak. Unfortunately, the only certainty appears to be the uncertainty that Parliament is continuously propagating. As a result, the contingency plans of several leading businesses have recently been in the spotlight, with measures such as stockpiling and rerouting supply networks.

Are you prepared?

When preparing for trading outside of the EU, businesses know there is no one-size-fits-all solution. Thoroughly assessing their individual business model by evaluating areas such as supply chains, people, expansion plans and currency, will help owner managers to discover their Brexit weak spots and plan accordingly.

Although not everyone has been struggling to perform strongly since the Brexit referendum, from April 2019, all businesses alike, will be exposed to uncharted territory. Regardless of whether they are directly involved in EU importing or exporting activities, changes in various aspects, such as trade tariffs, could impact costs further down the supply chain, potentially causing harm to profit margins in the long run. Therefore, in order to determine their exact risk exposure, owner managers should look beyond their everyday business processes.

For those aware of the potential risks, Brexit could present some valuable opportunities. For example, spotting red flags will allow businesses to build in contingencies designed to keep costs down, and avoid delays by switching from EU to local suppliers.

Managing the risks

As no one can predict how exactly Brexit will affect us, the use of certain techniques can be helpful for businesses to reduce the effects of cost pressures. When regularly updated with new scenarios and developments, approaches which combine financial data from the business’ balance sheets, profit and loss and cash flow information, such as three-way forecasting can accurately assess the future cash position of the business.

The time is now

John Cullen - Menzies Accountant

Despite the UK’s uncertain trading position, owner managers can no longer ignore the need to plan for life outside of the EU. With the deadline approaching, businesses which have not yet taken the necessary precautions would be wise to do so now.

For advice on planning for Brexit, download the firm’s new report entitled “A Brexit Barometer for UK Manufacturers

or please contact John Cullen our  insolvency partner at JCullen@menzies.co.uk or +44 (0)2920 447510

Print Friendly, PDF & Email

  • How do you aim for success?

    Within the continuously growing digital sector, the right structure and sufficient funding to invest in new products is key to promote growth and avoid potentially problematic delays. But how do businesses achieve this? The growth statistics of digital tech companies largely exceed those of the UK economy with their turnover growing by 4.5% in 2016 […]

    Print Friendly, PDF & Email
  • Avoiding insolvency with effective credit management

    Last year’s increase in corporate insolvencies of around 10% clearly illustrates the struggle of businesses to make a profit within competitive markets – highlighting that many are still unaware of how to protect their operations in order to prevent insolvency. The profitability of any firm comes down to strong financial management, of which effective credit […]

    Print Friendly, PDF & Email
  • Financial distress? Explore your options…

    When creditors are increasing pressure and financial difficulties are threatening the survival of your business, insolvency may seem imminent. However, as this might be prevented, it is important that owner managers are aware of all available options before taking action. Act fast! The possibility of protecting the business whilst also meeting creditor’s needs might still […]

    Print Friendly, PDF & Email