Directors Expecting the Worst If There’s a No Deal Brexit

Will the UK ever leave the EU? As regular readers know, IE does not believe that we will be allowed to leave the regulatory orbit of the EU, and that we will always pay billions to access the Customs Union. There may be a piece of paper saying we have left the European Union, but the reality is we are staying – and paying.

Most likely the next steps will invlolve more delays, more posturing by politicians and little concrete progress. But during this period of political limbo, companies must try and prepare for both scenarios – not easy. Here’s the latest from Premium Credit:

New research from Premium Credit, the UK’s leading premium finance company, amongst  183 board directors and senior management reveals 35% expect a no deal Brexit to have a negative impact on the companies they work for, with 14% saying it will be ‘very bad’.

However, 15% believe it will have a positive impact on the organisations they work for, and 36% expect no change at all.

In terms of how prepared they think the organisations they work for are for Brexit, 23% say they are ‘very prepared’, and 37% ‘quite prepared’.  Just 21% don’t think they are ready.

As part of their preparations for Brexit, several companies have stockpiled goods, and in many cases, this has negatively impacted their cash flows.  Premium Credit’s research reveals 48% of board directors and senior managers who work for companies that have stockpiled goods say this has meant their employers have put expansion plans on hold.    Some 39% say it has adversely affected sales, and the same number say it has resulted in a recruitment freeze.

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Adam Morghem, Strategy and Marketing Director at Premium Credit said: “The effects of Brexit stockpiling are far and wide.  One of the biggest implications has been the negative impact on cash flows, and what this means for the day-to-day running of companies.

“In many cases they turn to credit more to help pay for vital services, including insurance cover, and we have seen a rise in business’ considering our specialised services as a result.”

Premium Credit is the market leader in the UK and Ireland and the only premium finance provider accredited by BIBA.

For more information, please visit: www.premiumcredit.com

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