During the 2020 transition period TJ Williams Ltd have been continually assessing the likely impact of “Brexit” on our business and working to mitigate any impact on our customers.
Our primary objective is to ensure continuity of service to our customers by working closely across our supply chain and our risk management is focused on a constant review of supply chain planning in light of the anticipated risks around various Brexit scenarios.
Our current assessment is that the likely impact on our business will be extremely low as our production is either centred around UK manufacturers or from international partners based inside and outside the EU who are well versed in exporting to countries outside the EU. However, as part of our preparation we have implemented continuity planning as follows:
- The major area of risk is around future customs arrangements. For many years we have traded internationally both inside and outside the EU and are experienced at importing and exporting within and beyond the EU. We already work within existing customs declaration procedures with a UK EORI Number which will facilitate customs clearances going forward.
- We are aware of the planned changes around VAT reporting and have made financial provision to ensure our cash flow and working capital will not be affected.
- Depending on the final withdrawal agreement some products may be subject to import tariffs. We can confirm however that these tariffs will be small and will not affect existing orders or current commitments.
- We are working closely with our various import / export agents and transporters to ensure there is a smooth transition and that they have the ability to declare goods on our behalf.
- We have undertaken a review of our supply-chain both here in the UK and those overseas to ensure they are fully prepared in the event of no deal Brexit and have regular ongoing discussions to assess their Brexit preparations.
- To assist our staff internally we have opened links to relevant HMRC advice centres to ensure that shipment details are as accurate as possible which will further mitigate potential delays at customs points.
- Early in the Brexit process we set aside working capital funding to facilitate increased levels of stock holding. This strategic stock is now in place.
- We can confirm that all of our staff are UK residents and therefore do not envisage any issues with residency of our current workforce.
- We trade in a number of currencies including sterling, US Dollars and the Euro with our inflows in foreign currencies broadly aligned to our respective outflows. We therefore see little exposure should there be a short-term devaluation in sterling. Should this be longer term we will adapt our currency exposure risk management accordingly.
- We recognise that under certain scenarios Brexit may impact the Standards and Regulatory environment in which we operate however our current view is that there is insufficient clarity around this area against which to plan other than to continually assess updates from industry bodies, regulatory authorities and our supply chain.
In summary, we are not aware of any issues likely to seriously impact our business but continue to monitor this closely. Any disruption we envisage will be short-term disruption at borders and customs clearance and we have mitigated this by targeted early delivery of critical equipment and strategic stock holdings both directly and through our suppliers as set out above. With what we know today we feel we have appropriate plans in place which are under constant review and feel that as an SME we will have the ability to react quickly to the impact of various Brexit scenarios. Brexit has a high priority on our Risk Register and is under regular review by our Board of Directors.