Early Effects on Business: Nov 2016 to March 2017

 

These were some of the early effects of Brexit on UK Business:-

10 Nov, 2016: OUTLOOK WARNING – Halfords the bikes and car parts retailer warned that the sharp decline in the pound since the Brexit referendum would raise its costs.

11 Nov, 2016 PROFIT WARNING – SIG the building materials supplier warned that profits would be lower because of a slowing of activity around the time of the EU referendum.

13 Nov, 2016: REVENUE FALL – Lego said it had ended its promotional deal with the Daily Mail after parents voiced concerns that its brand could be damaged by links to newspapers that have taken a hostile stance on race, immigration and gender issues (not just Lego).

15 Nov, 2016: PROFIT FALL – Land Securities, the UK’s largest listed property company said it had swung to a loss in the six months to 30 Sep, as the vote to leave the EU weighed on the commercial property market.

15 Nov, 2016: REVENUE FALL & PROFIT FALL – Easyjet the low-cost airline said revenue dipped partly as a result of higher holiday costs for UK travellers following the EU referendum.

16 Nov, 2016: PROFIT FALL – British Land, the UKs second-largest listed property company said it had swung to a loss in the six months to the end of October, as the vote to leave the EU cut into commercial property asset values.

17 Nov, 2016: PROFIT FALL – Great Portland Estates, the listed London property developer said the value of its portfolio dropped 3.7 per cent in the six months to September, and it had sold assets, after the Brexit vote dented the commercial property market.

17 Nov, 2016: PROFIT FALL – Royal Mail, the privatised postal service said a drop in spending on junk mail triggered by uncertainty around the time of the Brexit vote contributed to lower half-year profits.

21 Nov, 2016: PROFIT WARNING – Mitie, the outsourcing company warned its full-year profit would fall short of expectations because of uncertain economic conditions following the Brexit vote, lower government spending and a rise in the UK minimum wage.

22 Nov, 2016: OUTLOOK WARNING – Compass, the FTSE 100 catering group warned it would increase prices on some UK contracts as a result of rising food costs following Britain’s vote to leave the EU.

22 Nov, 2016: JOBS, PROFIT FALL – Hewden, the machinery rental business went into administration blaming the Brexit vote for poor trading – and its three divisions were sold for 29m to listed rival Ashtead.

18 Jan, 2017: PROFIT WARNING – Mitie, the outsourcing company announced its third profit warning in four months and replaced its chief financial officer, as new contracts stalled.

18 Jan, 2017: PROFIT WARNING – Premier Foods served up a profit warning and announced a cost cutting programme as the food group battled sluggish sales and increased commodity prices, as a result of Sterling’s sharp fall since June 2016.

23 Jan, 2017: JOBS – SThree, the UK recruitment agency, warned of a slowdown in UK hiring because of uncertainty following the vote to leave the EU, which has shifted its business towards overseas markets.

7 Feb, 2017: PROFIT FALL – GM (General Motors), the US carmaker predicted $300m in Brexit-related losses in its Europe business in 2017 after a similar amount in 2016.

24 Feb, 2017: PROFIT FALL – Aston Martin, (James Bonds favourite car company!) hit by Brexit.  Pre-tax losses rose 24 per cent to 162.8m in 2016 as the falling pound, following the vote to leave the EU, took its toll.

27 Feb, 2017: INVESTMENT – BMW considering making an electric version of the Mini outside the UK because of the uncertainty posed by Britain’s decision to leave the EU.

1 Mar, 2017: REVENUE FALL – ITV blamed economic and political uncertainty for the first annual fall in advertising revenue since 2009, when the UK economy was hit by the global banking crisis.

2 Mar, 2017 PROFIT FALL – Capita, the British outsourcer, ousted its chief executive Andy Parker as it blamed a 33 per cent drop in pre-tax profits on a slowdown in contract wins since Britains decision to leave the EU.

MARCH 2, 2017: PROFIT FALL – Deutsche Telekom took a €2.2bn charge on its investment in BT, pushing the German group to a fourth-quarter loss in 2016.  Europe’s largest telecoms company blamed the Brexit vote, a decline in the value of sterling and the collapse in BT’s share price for the write-off.

6 Mar, 2017: MERGERS & ACQUISITIONS, HQ RELOCATION – Julius Baer, Switzerland’s biggest standalone private bank, saw Brexit as an opportunity to acquire a rival in the UK, according to its chief executive.  But despite its enthusiasm for a UK acquisition, Julius Baer paused plans for a European hub there, because it believes Brexit will dent the UK’s economic growth.

10 Mar, 2017: OUTLOOK WARNING – Mars, the US manufacturer of the eponymous bar, warned of a rise in chocolate prices in the UK, unless Britain secures a favourable trade deal with the EU once it quits the regional bloc.

17 Mar, 2017: PROFIT FALL – SThree – The decline in the recruitment company’s British business accelerated at the start of the year, with Brexit uncertainty and public sector cuts weighing on its first-quarter profits.

17 Mar, 2017: PROFIT FALL – Eurazeo, one of Europe’s largest listed private equity groups and owner of Europcar and Moncler, has posted a 5.3 per cent increase in revenues to 4.3bn.  But the group saw profits affected in portfolio company Fintrax, which offers VAT refunds, as a result of the drop in the British pound.

24 Mar, 2017: HQ RELOCATION – Brait, the South African investment group, has cancelled plans for a London listing of its shares, blaming uncertainty over the UKs exit from the European Union.

28 Mar, 2017: OUTLOOK WARNING – Bertelsmann, Europe’s biggest media company by revenues, may move some of its business from London in the event of a hard Brexit, amid concerns a British withdrawal from the single market could leave the company with a massive tax bill.

29 Mar, 2017: MARKET ACCESS WARNING – Ryanair, in the wake of warnings from the European Commission that UK planes could face severe restrictions on European flights immediately after a hard Brexit, Ryanair warns that time is short, with a distinct possibility of no flights between Europe and the UK for a period from March 2019 in the absence of a bilateral deal.

29 Mar, 2017: PROFIT FALL – Johnston blamed economic uncertainty created by last June’s Brexit vote for a drop in advertising revenues, particularly from small and medium sized businesses who make up the core of the group,s advertising market.

30 Mar, 2017: INVESTMENT, MARKET ACCESS WARNING – Lloyds confirmed that it will open a new office in Brussels in response to Brexit.  Faced with the loss of passporting rights from its London home, the insurance market has decided to put its new operation close to the heart of EU decision making.

 

Links to other sections of Ditch Brexit:

Brexit Job Losses to March 2018 – In Summary

Brexit Job Losses to March 2018 – In More Detail

Economic & Social Uncertainties of Leaving the EU

More Reasons to Ditch Brexit