Share your story

Brexit cited in profit warnings from 10 companies

Ten UK and global companies have cited the EU referendum result in profit warnings since 23 June, according to the Financial Times’ Brexit business impact tracker.

Three are estate agents: Countrywide, LSL and Foxtons. Other UK businesses are the budget airline EasyJet, the crockery maker Portmeirion Group and the recruitment group SThree, while international companies citing the negative impact of Brexit are the winemaker Australian Vintage, the Japanese motor companies Suzuki and IAG, the Japanese electronics group Canon.

Job cuts

The tracker also reported on companies expanding or cutting jobs in response to the Brexit result.

On a positive note, the French water and waste management company Veolia expects to create 600 jobs in the UK, and the Japanese financial group Mitsubishi UFJ is planning to expand its London operations.

But the recruitment company Page Group has reduced its headcount by 3 percent and the retailer Next said it may have to expand in mainland if fulfilling sales from the UK becomes less efficient. Lloyds Banking Group has announced it is cutting 3,000 jobs and the banks Goldman Sachs, HSBC, JP Morgan and Morgan Stanley have all said they may have to move operations to Europe – with three of the four estimating combined job losses as high as 6,000.

Benefit

The tracker also found 28 companies reporting or predicting benefit or no damage from the Brexit result.

Of these, 12 said they benefited from weaker sterling because their business is abroad or they are selling goods or services to overseas visitors. These included the outsourcing company Serco, the watch maker Swatch, the theme parks operator Merlin Entertainments, and the solid fuel supplier Hargreaves Services.

Three companies – an interdealer broker, a new currency exchange app and a financial spread betting provider – did well out of the poll result because their businesses do well out of volatity or market uncertainty. Two news media companies posted good results, boosted by an increase in news consumption in a time of dramatic events. And one firm, the Swiss agribusiness Syngenta, predicted that the deregulation of Brexit would enable it to take swifter advantage of scientific breakthroughs.

Ten companies, including the pizza delivery company Domino’s, the pub chain JD Wetherspoon and the phone provider BT, recorded or predicted robust business unaffected by the Brexit events.

Related articles

European companies plan withdrawal from British banks

More than half of European companies think UK banks will lose “passporting” rights

Read article

Infrastructure spending suffers post-poll slump

The value of contracts for July fell 20 percent against the previous month

Read article

Leading North East architect blames collapse on Brexit

Red Box Design suffered delay or cancellation of five major projects after the poll result

Read article

Latest tweets

@nowweknoweu

Have your say

We're keen to find out how the effects of Brexit are affecting people and businesses nationwide. If you'd like to share a story, please get in touch

Get in touch