BREXIT STATEMENT – Issued Tuesday 4th December 2018 – London, UK
INTRODUCTION
Since the United Kingdom (UK) referendum result on membership of the European Union (EU) in June 2016, Alexander Fraser and Son Trading Limited (aka Frasers Aerospace) has been working to assess and mitigate the likely impacts of what has become known as ‘Brexit’ on its customers and suppliers under a variety of potential outcomes.
We are a global business headquartered in the UK with the majority of our sales being outside of the UK. We have one main site, and a range of Agents and Distributors at key continent locations.
BREXIT FOCUS AREAS
In our initial risk assessment, we identified a number of key areas of focus for a potential Brexit impact, including:
- Customer service and supply chain implications.
- Financial performance, including the potential impact of tariffs.
- Cash liquidity and financing.
- Employees.
- Regulatory frameworks and compliance including REACH and ISO.
- The future.
We have assessed each area and likely impacts have been evaluated as far as we are currently able. Whilst we recognise that there remains significant uncertainty around the eventual political and legal Brexit outcome, based on our understanding today we do not believe that Brexit will generate unmanageable risks for our business.
We believe that our flexible customer-centred business model will be able to adapt and respond to likely added complexities from Brexit. In the event of tariffs being introduced on trade between the UK and EU, the financial impact should be limited. We also welcome the prospect of a transition period to assist in further mitigating risk and managing short term impacts and disruption.
CUSTOMER SERVICE AND SUPPLY CHAIN
Since the referendum, we have been actively engaging with our customers, suppliers, advisers and other stakeholder groups to ensure that we have the broadest and most up to date view of the likely impact of potential Brexit scenarios, both on us and on those with whom we do business.
We already have in place flexible supply capacity in both the UK and Europe, we ship product via ports that have greater capability to handle physical disruption and delays in customs clearance, and we have extensive inventory capacity capability to protect customer service.
We will continue actively to work with our customers and supply chain partners over the coming months to prepare and to monitor developments, in order to operate effectively through the Brexit period and beyond.
This statement will be updated as definitive, accurate information becomes available to us.
Frasers Aerospace is a division of Alexander Fraser and Son Trading Ltd – Company registration no. 03876072
