Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
Check out our straightforward definitions of common legal terms.
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Access our unrivalled global news content, business information and analytics solutions
Insurance, risk and compliance intelligence using big data, proprietary linking and advanced analytics.
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
On 17 October, it was announced that a draft Brexit deal had been agreed between the UK and EU, although at the time of writing approval by Parliament remains uncertain. The agreement comes after mounting fears over the past six months that the UK may leave the EU without a deal.
Market Tracker has conducted research into companies referencing Brexit within their annual report across those FTSE 350 companies (excluding closed ended investment funds) with a financial year end between 1 April 2018 and 31 March 2019, holding an AGM between June 2018 and July 2019. The findings highlight while that Brexit is an unavoidable fact for companies listed on UK markets, with 93% of companies making some reference to Brexit, only 24% of the 284 FTSE 350 companies reviewed specifically referred to a ‘no deal Brexit’ in their annual report. Unsurprisingly, 95% of those companies were incorporated in the UK, perhaps suggesting that the issue is not as significant for companies incorporated outside of the UK.
When considering industry sector, we found that a disproportionately higher number of Aerospace & Defence companies referenced a ‘no deal Brexit’ in their annual reports, citing border control and customs issues as a key concern. In March 2018, BEIS published a report, The impact of Brexit on the aerospace sector, which highlighted the importance of negotiating clear terms with contracting partners and concluding that ‘It is in the interests of the UK and the EU27 that both sides in the Brexit negotiation reach a firm agreement in the coming weeks on the arrangements for a transition or implementation period after March 2019, to avoid firms having to commence costly contingency plans.’
Companies operating in the Engineering & Manufacturing sector also ranked highly on the list of companies citing a ‘no deal Brexit’, with concerns around a weak pound, import tariffs and supply chain failures topping the list of risk factors. Rotork plc’s annual report (in its viability statement) cited ‘a loss of revenue due to logistic issues, supply chain disruption or permanent cost increases as a result of increased tariffs’ as the potential consequences of a ‘no deal Brexit’, whereas IMI plc voiced in its annual report the widely held fear that ‘The threat of a ‘no-deal’ Brexit is the risk of both EU and UK ports not coping with the additional volume of customs work.’ The impact on this industry sector has been widely publicised by the trade body MakeUK, with CEO Stephen Phipson commenting that ‘Make UK has made it clear from the start that no deal will decimate Britain’s manufacturing companies.’
In contrast, the number of companies citing a ‘no deal Brexit’ in Professional Services, Construction and Media & Telecommunications was comparatively lower. It is likely that while businesses in all sectors will be affected by the macroeconomic or cross-border effect of a no deal Brexit, the specific pressures on labour mobility, tariffs, supply chains, taxation and regulatory/policy have a less discernible impact on these sectors.
Ultimately, while companies are acknowledging both Brexit and the possibility of leaving the EU without a deal in their annual reports, as with all things Brexit related, the overriding theme remains one of uncertainty.
Our upcoming AGM season 2019 trend report looks in more detail at Brexit disclosures in annual reporting and other hot topics in corporate governance, to be published in November.
Free trials are only available to individuals based in the UK
* denotes a required field
Market Tracker is a unique service for corporate lawyers housed within Lexis®PSL Corporate. It features a powerful transaction data analysis tool for accessing, analysing and comparing the specific features of corporate transactions, with a comprehensive and searchable library of deal documentation across 14 different deal types. The Market Tracker product also includes news and analysis of key corporate deals and activity and in-depth analysis of recent trends in corporate transactions.
0330 161 1234