ARE WE ALREADY SEEING AN EFFECT OF BREXIT ON COMPANIES?

Hello and welcome to another blog on insolvency topics from Purnells.

Over a month has passed since the British people's historic decision to leave the European Union and not a lot appears to have changed, on the surface, for the man in the street.

However, here at Purnells we believe that we are already seeing the negative effects of the uncertainty that has crept into the back of the minds of many large companies based here in the UK, which in turn is effecting smaller companies with whom they contract.

It will not be until many years in the future, when our new relationship with the EU has been formalised and separate trade agreements have been agreed that we will know the course the UK is going to take.

Theresa May and her Government may look to present the path that they wish to take and the agreements they wish to strike, however until they have been signed and sealed, there will be continuous doubt and uncertainty over the UK's economic future.

So how could negative effects of 'Brexit' already be here?

In the last few weeks Purnells have had companies approach for advice who have been affected by large multinational tech companies decisions to suspend much ancillary expenditure that is not absolutely necessary. One client, who is involved in training provision, had been advised by such a company that they were suspending all "in house" non-essential training for 12 months until they could better assess the effect of 'Brexit' and their future in the UK.

For many small training providers, the loss of such a major client could have cataclysmic results for their future and immediate revenue. That is why we always recommend an element of diversification of services or client base. To not do either could be seen as putting "all your eggs in one basket".

If 'Brexit' is likely to affect your Company or business it may be best to take early advice to consider whether a restructure of the business or other protective steps may offer better protection going forward in this time of uncertainty.

As always, Should you wish to discuss the implications of 'Brexit' or any other insolvency matter in more detail, please do not hesitate to get in contact. Telephone: 01326 340 579, Email: ale@purnells.co.uk