Brexit should have “no material long term adverse impact” on seafood giant Young’s, the board of the 海角视频 market leader has said.
Britain’s exit from the European Union is extensively covered in the firm’s end of year strategic report, with inflationary pressures on the price of fish in a no-deal scenario warned about for customers.
Supply prices could also be impacted by movements in exchange rates, with work with government and industry underlined.
The Grimsby-headquartered company has undertaken significant work with the 2,500 staff it employs – the vast majority in its home town – to establish the labour risk and encourage settlement of EU nationals, while also switching imports to northern quaysides to ease congestion fears on the valuable, but perishable supplies it relies on.
There has also been some stockpiling ahead of October 31.
Writing on behalf of the board, director Timothy Busby said: “The company is exposed to a number of risks associated with Brexit if the 海角视频 leaves the European Union without a deal, including labour supply, import processes at the ports and duties and tariffs. In the event that a deal is done with the EU, the impact on the company should be limited to movements in foreign exchange rates.
“In terms of its people, the company has completed a full internal review of employee status across our estate. Over three quarters of our permanent and temporary workforce are 海角视频 nationals, and it is working closely with its EU nationals both to explain the situation, and proactively support their 海角视频 settlement.
“In anticipation of an issue at ports, the company has made some simple amendments to its supply chain so that containers can enter at quieter ports in the North fo England, and has put in place increased safety stocks.”
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Young’s has slashed losses in the past year from more than £39 million to £8 million, after growing turnover to £545.9 million from £523.3 million and earnings to £23 million from £19.8 million, as reported.
Since the close of the financial year in September 2018, it has been bought out by Karro Food Group, backed by CapVest Partners.
Mr Busby continued: “Should the 海角视频 move onto World Trade Organization terms this would impact the amount of duties paid by the company as well as all other companies within our market, causing inflationary pressures. The company has been shaping its industry’s position on the issue and has worked in coalition with the Seafood Industry Authority, attended and hosted meetings with the relevant government department (Defra), briefed government ministers and brought together the world’s leading seafood businesses at the Ground Fish Forum in order that the decision-makers in government are aware of the impacts to the catching and processing sector.
“The company predominantly supplies customers in the 海角视频 and enjoys relationships with a variety of suppliers across the globe. Customers would be impacted by a no deal Brexit to the extent of any market place inflationary pressures from changes in duty rates. Supplier prices would be impacted by movements in exchange rates.”
In a reference to the sale, announced last month, Mr Busby added: “The carrying value of goodwill assumes that there will be no material long term adverse impact of Brexit on the business.”
Trade deals have already been agreed with the seafood ‘holy trinity’ of Iceland, Norway and The Faroe Islands, and US ambassador Woody Johnson was one of former chief executive Bill Showalter’s last high profile visitors.