Business preparedness for BREXIT

Like many businesses across the UK, Fixfast has reviewed its business readiness in the event of a “no deal” outcome to the BREXIT negotiations. With further clarity regarding BREXIT as the date of 31/12/2020 draws closer, we have updated this document to reflect the current position of the business readiness for exit from the EU.

 

Workforce.

We have arrangements in place to ensure that all employees who are EU citizens are fully prepared for continuing employment, ensuring we have sufficient labour resource to meet our ongoing business needs.

 

Disruption in Supply.

Fixfast carry substantial stockholdings in our warehousing across the UK. We have arranged to build up stocks of products sourced within EU27 to allow for any unexpected delays in supply. For goods manufactured for us outside the EU, we don’t expect arrangements to change significantly, but in any case, we carry substantial stockholding of these products allowing us scope to absorb additional delays in supply. The recent months of the COVID-19 Pandemic has been a good stress-test for our supply chain and we are pleased to say we have maintained good levels of service across out entire range. In addition to this, we are investing in increased manufacturing capacity to enable us to have superior flexibility to product demand.

 

Cross-border Trade and Taxation/ VAT.

As we already trade with countries both inside and outside the EU, we have existing arrangements in place for importing and exporting. These existing arrangements will apply to the small number of suppliers within the EU27 economic area. One aspect that we are monitoring is the capacity of the existing UK Customs arrangements to deal with the increased freight volumes. However, this situation will affect a large proportion of industry, and we believe that the government will be forced to provide suitable arrangements in order to ensure economic stability. This is an area which we will continue to monitor and will assess our options to provide the best possible service for our customer base.

 

Regulatory and Compliance.

A number of our products are covered by ETA approvals. For the time being, CE-marked products can products can still be sold in the UK. The regulatory bodies we are contracted with have arrangements in place both to continue as a recognised Technical Assessment Body under the CPR (Construction Products Regulations) and be accredited as a UK Technical Assessment Body for approval of products under the proposed new UKCA Marking. Thus, we expect to be able to market our products in the UK and in EU27 having both UKCA and ETA approvals.

 

Exchange Rates.

In terms of material sourcing, the EU27 area represents a smaller proportion compared to other parts of the world. We have currency hedging arrangements in place to cope with fluctuations in exchange rates and reduce our exposure to adverse currency movements. These have been reviewed and updated to take account of the additional uncertainty caused by Brexit.

 

FIXFAST. September 2020.