News

Delta put Brexit Plans in Place

Posted on 20th March 2019

The UK’s role as a trading nation is going to change significantly as we exit the EU.

Understanding how our business will be impacted and the level of associated risk and opportunity is critical to managing the change and ensuring the best possible outcome in the new trading environment.

Brexit will impact on all businesses, and most affected will include those that: 

• Sell or buy high volumes of goods or services to/from the EU
• Have highly integrated UK-EU supply chains, particularly those that operate ‘just in time production’
• Are heavily reliant on the EU for staff – whether temporary or permanent
• Operate in highly regulated areas, whether services (e.g. financial, legal) or goods (e.g. chemicals, pharma)
• Have complicated EU and international supply chains
• Sell goods or services to one of the 50+ countries with which the EU has a Free Trade Agreement (FTA’s)
• Buy goods or services from one of the 50+ countries country with which the EU has a FTA
• Benefit from EU Research and Development (R&D) grants and other funds
• Invest in UK based assets

Delta Balustrades are taking the following actions to assess our exposure to Brexit risks against well-informed scenarios and will implement mitigation plans to reduce risks and seize opportunities.

The following framework has been developed by trade policy specialists.

We’ve created a checklist based on our current operating model however, please be aware not all may be relevant.

Risk Assessment Checklist

• What proportion of our sales and purchases are with counterparties in the EU and what product/service categories are they covered under?

• • Currently we do not export products outside the UK
  • Approx. 5% of our purchases come from outside the UK

• How much of an increase in duty is likely between the UK and EU cost under the different Brexit negotiation outcomes?

• • Difficult to assess currently but is likely to be small due to the small amount of imports

• What is the size and number of your shipping consignments and how could your customs administration costs be impacted?

• • Difficult to assess currently but is likely to be small due to the small amount of imports

• What is the potential cost of additional border delays in time, working capital and operational difficulties?

• • Currently hold 5 months stock to help mitigate this risk. We are researching other options of getting supplies from within the UK

• What is the potential cash flow impact of the loss of VAT relief?

• • Minimal impact on cash flow

• Are you trading with suppliers or customers in countries who currently have a trade agreement with the EU?

• • This is something we are looking into with steel suppliers. We understand that all glass products are made in the UK

• Are your products currently tested or certified against EU standards?

• • Yes and they comply with the BS standards

• Do you need movement of data between the UK/EU to provide your products or services?

• • Not currently

As the UK’s Brexit deal is ongoing and subject to change at any moment, we will be reviewing our Brexit strategy inline with the definitive outcome.

If you would like further information on our Brexit strategy or to discuss a specific project, please contact us on 01270 753 383.