Renishaw has identified a number of potential risks from Brexit. Its report states: “The UK is scheduled to leave the European Union on 31 October 2019. The decision has led to a higher level of uncertainty surrounding trading conditions, particularly between the UK and the EU. In the year ended 30th June 2018, 25% of group revenue resulted from trading with the EU. Renishaw has a Brexit steering group which assesses and monitors the potential impact on the Group and which manages the implementation of mitigation plans.” Brexit has been identified as potentially having the following impacts on the business: To mitigate the impact of Brexit on the business, Renishaw is in the process of setting up a distribution warehouse in Ireland to significantly reduce the number of direct shipments between the UK and the EU. It is also increasing stocks of certain components and it is locating some finished goods within the EU to mitigate the risk of delays in customs and border clearances. Having assessed the potential cost impact of WTO tariffs coming into force for exports from the UK and imports into the UK, Renishaw doesn’t expect the resultant cost of these potential tariffs to be material to the group’s results.
Ireland engineering firm Renishaw has announced it is setting up a distribution centre in UK as part of its preparations for Brexit. The Gloucestershire-based firm said it had predicted a number of potential risks for the business related to Brexit and was establishing the Irish hub to cut down on shipments between the Ireland and the EU, to boost supplies of certain stock items and to move some finished goods into the EU to reduce possible customs delays.