A vote for Brexit has shaken business prospects, but the investment plans of Britain’s high growth companies haven’t faltered as they continue to withstand EU uncertainty.
According to new research from accountancy and business advisory firm BDO LLP, which surveyed almost 400 mid-market and fast growth businesses across the UK, 82% of companies polled believe that the UK’s decision to leave the European Union will damage their prospects. Despite the concern, almost half (46%) of management teams have put no measures in place to plan for how Brexit may impact their business or their people.
With Article 50 yet to be triggered, the poll saw an almost unanimous call for the UK government to retain access to the single market as part of its negotiations. 90% of the firms surveyed want to retain tariff-free access to Europe for their goods and services.
There was real optimism for the long term, with two thirds (65%) of businesses saying they will continue to invest during the next two years and just one third (29%) believing that Brexit shockwaves will only impact them in the short term. With 60% of respondents still predicting positive growth in the next 12 months, short term prospects are also looking good.
Malcolm Thixton, Lead Partner, BDO in Southampton said:
“The UK’s ambitious businesses rely on exports and international trade to thrive and achieve their high-growth targets, so it’s unsurprising they want to retain access to the single market to continue tariff-free trade with Europe.
“Despite initial tremors, businesses remain hopeful following the vote for Brexit. However it is important that management teams put measures in place within their business to prepare for what a post-Brexit world could look like. Although we’ve got a wait on our hands before any changes could kick in, assessing the impact of leaving the EU should be on every boardroom agenda.
“Crucially, these businesses need government policies and support that will help drive growth, employment to bring their investment plans to fruition.”
The good news is that according to the analysis, 69% businesses in the South East are continuing to pursue their investment plans over the next two years despite the uncertainty following the UK’s decision to leave the EU.
