The UK’s decision to leave the European Union (Brexit) means that there will be challenges that we must be prepared for. We understand the ambiguity around Brexit can be perplexing due to the fast-paced nature of the current situation. As a business, to avoid any negative impact for our customers, we are monitoring the case to prepare for any possible changes that may affect contracts with our customers and our supply chain. Our view is that the impact of even a hard [no-deal] Brexit will be minimal due to the type of services we offer.
Distribution Technology is a UK registered business with no current operations in other European countries. At present, most of Distribution Technology’s revenue is derived from UK based customers. Although some of these customers have overseas branches, these are not currently served by Distribution Technology. Our supply chain is predominately with UK based companies and we have no notable dependences on goods, services or people from other European countries.
In our initial risk assessment, we have identified several focus areas for a potential Brexit impact. These are:
- Customers and supply chain
- Financial performance, including the potential impact of tariffs
- Cash and financing, including interest rates
- Regulatory frameworks and compliance
We will continue to actively work with our customers and supply chain partners over the coming weeks and months, to prepare and to monitor developments, in order to operate effectively through the Brexit period and beyond. In the meantime, we will ensure that we continue to deliver excellent services to all our customers as normal.