Survey reveals 35% of UK businesses expect a decline in profits due to Brexit

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5th November 2018 17:42 - Business Support

Survey reveals 35% of UK businesses expect a decline in profits due to Brexit: A survey looking at the impact of Brexit on UK businesses has found 35% forecast reduced profits in 2019 after departing the EU.

The survey carried out by the Chartered Institute of Management Accountants (CIMA) found only 5 percent of the 1,496 finance professionals polled believed their profits would increase in 2019, with 27 percent prepared for flat profits.

As well as a decline in profits, 58 percent questioned believed that the cost of running the business would increase post-Brexit. Just under half (49 percent) believe that the amount business costs will increase by will be 1- 10 percent, while 10 percent are prepared to see costs grow by over 10 percent.

Seventy-five percent of those polled said they have concerns over a ‘no deal’ Brexit and what it will mean for their businesses, with four in ten saying they are ‘extremely concerned’.

When it comes to risk assessments, only 22 percent of respondents said one had been carried out in full looking at the various ways Brexit could impact on areas of the business. This is despite 77 percent saying they have taken measures to ensure they are prepared for the EU exit.

Forty-two percent of respondents said they expect their 2019 revenue expectations to be less ambitious.

Andrew Harding, chief executive at CIMA, said: "Unless companies fully understand how Brexit will affect them, there is a strong chance that many will be caught short once the UK leaves the EU.”

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