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KPMG comments on Brexit with 75 days to go

KPMG comments on Brexit with 75 days to go

James Stewart, Head of Brexit at KPMG UK said:

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James Stewart, Head of Brexit at KPMG UK said: 

“These are extraordinary times for business, a period when nobody seems to know what’s going to happen and the stakes are sky high.  Despite the parliamentary gridlock most business people still expect some sort of deal to be done somehow.  However confidence is thinning and we continue to see heavy client activity on no-deal planning.


“A number of UK businesses are looking very closely at their working capital and financing.  This means pricing up any potential penalties and the direct financial costs of a no-deal situation.  Others, particularly foreign owned multinationals, don’t really see cashflow as their primary issue.  For them Brexit is more about reputation, margins and new regulatory hurdles.  We think everyone should be looking at contracts, supply chain security and workforce planning.  Even at this stage we are still seeing massive variations in preparedness.  

“Firms that are capital intensive or operating a negative working capital model will be particularly vulnerable to cost or revenue shocks.  Also companies who sell in sterling and buy in dollars could be in real trouble if they haven’t hedged correctly.  A raft of businesses in automotive, retail and hospitality remain very exposed.”

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For media enquiries, please contact: 

Paul Middleton

M: +44 (0) 7387 257543

E: paul.middleton@kpmg.co.uk

KPMG Press Office:

T:  +44 (0) 207 694 8773

About KPMG:

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 16,300 partners and staff. The UK firm recorded a revenue of £2.338 billion in the year ended 30 September 2018. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 154 countries and has 200,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such. 

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