UK SMEs say Brexit has cost them £70,000 each
A new report by UK financial services provider Bibby has revealed that a majority of UK SMEs have seen their turnover decrease since the Brexit referendum, losing as much as £70,000 each.
15 December 2017
More than two-thirds of UK SMEs trading in foreign currencies say that they have lost up to £70,000 due to volatility sparked by the Brexit referendum, according to a new study by Bibby Financial Services (BFS).
The ‘Trading Places’ report reveals that 67% of UK businesses with foreign exchange requirements say they have been adversely affected by currency volatility in the past 12 months, with an estimated financial impact of £69,669 (approximately €79,000) each.
While currency volatility featured as the top concern for both importers and exporters, the research also found that almost a quarter of UK SMEs trading overseas (23%) have never reviewed their foreign exchange arrangements to see if they could better protect themselves against future volatility.
Meanwhile, the Global Business Monitor shows that 20% of Irish SMEs see currency fluctuations as a barrier to international trade. 69% of Irish respondents see Brexit as a major threat to their own international growth.
The Global Business Monitor, a report issued by Bibby Financial Services recently, shows that 20% of Irish SMEs see currency fluctuations as a barrier to international trade. The survey also shows that geo-political events loom large in the minds of Irish respondents, with 69% viewing Brexit as the top threat to global economic growth amongst Irish SME’s in 2017.
“These figures from the UK are quite stark,” says Mark O’Rourke, head of business with Bibby. “We need to be aware that currency volatility will impact the bottom line for Irish SME’s who import or export.
“This report is a warning bell for Irish companies that they should be putting practices in place to safeguard against the fluctuating pound,” he added. “Currency volatility is by far the greatest challenge facing Irish SMEs currently.”