Calculating the Cost

The true cost of the shock decision by the British people to pull their country out of Europe has yet to be counted. It is true to say that nobody really knows or understands the nature or the extent of the financial impact.

Business, commerce, trade and the professions are enveloped in a fog of uncertainty. Already there are reports that the British Government is prepared to pay Brussels billions for the critical Financial Passports which allow the City of London institutions trade freely with the rest of Europe. The withdrawal of these permissions would have a far-reaching effect on some of the world’s biggest banks and trading institutions and could trigger a financial flight from Britain.

Brexit has created huge uncertainty for business. The fall in the value of Sterling since the June referendum vote has added to that uncertainty. Business leaders believe that Brexit could lead to a once in a lifetime change in legal and fiscal operating models, which will have a significant finally impact on people, consumers and customers. Understanding at company level the cost or opportunity of Brexit is therefore an urgent priority for leaders in firms affected by the UK’s decision to leave the EU. calculate01

Hume Brophy’s Brexit Insight quantifies to City of London analyst standard the financial impact of all potential regulatory risks and other political uncertainties, using a proprietary financial and risk modelling tool. It gives Board Directors, CEOs, CFOs and Regulatory and Corporate Affairs Directors the best impact and opportunity analysis of Brexit on your firm’s share price, cash flow or other major financial KPIs. 

Having determined the different political and financial scenarios and applied a bespoke weighting to each, our model gives companies a sound projection of the financial impact of change options. We can therefore help clients identify risks and prepare for every outcome. The model can be updated as new intelligence and information become available, thus giving businesses real time financial analysis.

This is important because:

  • The pace at which executives will have to react as Brexit negotiations evolve will be fast and unprecedented in complexity.
  • Boards are having to re-assess their appetite for risk.  
  • Companies are mobilising teams dedicated to handle Brexit but don’t yet know where to prioritise scarce resources to change and engagement plans.
  • Competitive advantage will be secured by those better equipped to project Brexit outcomes and prepare to move fast.
  • Frontier movers could find themselves well positioned to secure lucrative offers from other member states with regards to locations, incentives, resources and R&D. 

Brexit Insight has been developed by financial experts and analysts with over 40 years’ international market experience.