How Brexit vote aftermath unfolded in business world

How Brexit vote aftermath unfolded in business world


The Brexit vote was followed by a deluge of warnings from businesses amid fears over the hit to consumer confidence and as the pound plunged to depths not seen for 31 years.

But firms have since become more upbeat, with a number of major corporate deals announced and a spate of stock market flotations now in the offing.

Here are some of the key business developments in the 100 days since the Brexit vote:

June 24 – British Airways owner International Consolidated Airlines Group cautioned that profits would be knocked following the outcome of the referendum.

June 27 – Budget airline easyJet said it would take a £28 million hit following two months of turbulence and warned Brexit would have a negative impact on the airline as the plunging pound sends its costs soaring.

June 27 – Estate agency Foxtons issued a profit warning, saying the upturn it had expected in the second half of the year is ”now unlikely to materialise”, adding that annual earnings will be ”significantly lower” than in 2015.

June 28 – Virgin Group founder Sir Richard Branson said the company may have lost up to a third of its value since the Brexit vote and revealed it had pulled the plug on the acquisition of a UK firm employing 3,000 staff.

June 28 – Online grocer Ocado said Brexit could send supermarket prices surging as the plunging pound pushes up costs for retailers.

June 29 – Telecoms giant Vodafone warned it could move its headquarters out of the UK if Britain’s negotiations to quit the EU would restrict free ”movement of people, capital and goods”.

June 29 – Pubs firm Greene King said the blow to consumer confidence from Brexit could see drinkers knock back fewer pints in the future.

July 6 – German energy company Siemens put new wind power investment plans in the UK on hold until it has more clarity on the UK’s future trade relationship with the EU.

July 7 – Mike Ashley’s retail chain Sports Direct warned it will be “impacted significantly” by the collapse in sterling, adding that a weakening economy post-Brexit will hit consumer confidence.

July 8 – John Lewis boss Andy Street cautioned over the impact of the plunge in sterling and urged the Government to speed up trade negotiations.

July 12 – Cinema chain Odeon & UCI is snapped up by US firm AMC Entertainment for £921 million, with its new owner confirming the plunging pound was a major factor.

July 18 – Japan’s SoftBank unveiled a £24 billion swoop for Cambridge-based technology firm ARM Holdings. Prime Minister Theresa May said the move shows “Britain is open for business”.

July 25 – Ryanair boss Michael O’Leary said the Irish carrier would shift investment away from the UK and may decide not to deploy new planes on British routes next year, focusing on the EU instead.

July 27 – GlaxoSmithKline brushed aside Brexit jitters and announced it is pumping £275 million into its three UK manufacturing sites, dubbing the UK an ”attractive location”. It said sales and profit in its latest quarter were boosted by the weaker pound.

July 28 – Lloyds Banking Group announced it will cut a further 3,000 jobs and shut 200 branches ahead of an interest rate cut and cautioned Brexit could have an adverse impact on its future performance.

August 1 – Daily Mirror publisher Trinity Mirror warned it could be forced to cut costs as a result of the referendum, with the weaker pound making newsprint more expensive.

August 3 – Next boss Lord Wolfson said the high street giant may have to hike prices by as much as 5% next year in the face of soaring costs after the pound has plunged in value.

August 15 – The FTSE 100 surges close to the 7000 mark, closing at a 14-month high of 6941.2.

September 5 – Insurance market Lloyd’s of London said it could move parts of its business to the continent unless access to the single market is secured after Brexit.

September 6 – Housebuilder Berkeley Group said the London property market remained under pressure in August with sales down by a fifth, but had settled down after a “hiatus” following the Brexit vote.

September 7 – Builder Barratt Developments said it is “business as usual”, with an under-supply of new homes still supporting the sector.

September – The City saw a flurry of stock market flotation announcements as firms look to capitalise on the strength of the FTSE 100 Index since the referendum. Price comparison site GoCompare, waste management group Biffa, fitness chain PureGym and Hollywood Bowl confirm plans to list.

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