Additional costs will occur, regardless of a deal or no-deal Brexit, due to extra customs administration.
We estimate these costs to be at +1.5% to +2.0%, however we are working to optimise consignments in order to minimise these costs.
We have already included 1.5% of additional cost within our January 2021 price increase.
If the UK leaves the EU without a deal, we will face additional duty costs on all of our products. These costs will vary by product line and stock keeping unit and will range from approximately 1% to 6%. There is no way of avoiding these costs.
If we reach a no-deal Brexit scenario, we will pass these costs onto the market by way of an extraordinary price increase to be announced in January. This will be in the invoice price of the product.
All customer quotations (new or existing) going into 2021 will be advised of this possible increase.
We anticipate further cost increases due to increased cost to our suppliers and potential devaluation of Sterling.
For the duration of 2021 we will absorb these costs and review them as part of our January 2022 price increase. However, if this becomes unsustainable, we reserve the right to impose an extraordinary price increase at any point during the year. We must stress, however, that this is not our intention.
