UK companies not ready for Brexit

Brexit flagsThe largest UK companies are not ready for Brexit, supporting the remaining of the country in European Union. The quarterly survey by Deloitte was held among 120 CFOs of the largest companies in UK, including 20 companies in FTSE 100 and 55 companies in FTSE 250. The total market capitalization of British public companies surveyed amount to 360 billion GBP, which is nearly 17% of the UK stock market. Following the results, about 75% from the surveyed CFOs support remaining of UK in European Union, compared to 62% according to survey made 3 months ago. Thus, the study gives a pretty good insight into the processes and plans of some of the largest British companies.

The Deloitte’s survey was published only a few weeks after the Director General of the Confederation of British Industry (CBI), Carolyn Fairbairn, said that “leaving the EU would cause a serious shock to the British economy, the potential damage to the UK’s GDP amounted to 100 billion GBP and 950 thousand jobs by 2020 and negative effects may continue for many years after that”.

However, only 26% of surveyed CFOs answered that their company has made or is in the process of preparing a contingency plan for the possible exit of Britain from the EU. Around 53% are expressly indicated that they did such plans. This means that if the British still decide to leave the EU, companies will have difficulties to cope with the transition.

About the Author

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Zhivko Stanev
My name is Zhivko Stanev and work as co-chief editor at Business News Feeds. I'm writing for business news, mergers and acquisitions and employment for Asia, Northern Europe and Africa.

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