London, Oct 22 (UNI) Businesses expect Brexit to hit their bottom line in 2019 with 35 per cent finance professions in the United Kingdom forecasting a decrease in their profits.



According to a survey of 1,496 UK finance professionals from the Chartered Institute of Management Accountants (CIMA), 27 per cent expect profits to be flat in 2019 as a result of Brexit, with only 5 per cent forecasting an increase.



CIMA Chief Executive Andrew Harding on Monday released the data of the survey, conducted from October 1 to 10 among 1,496 finance professionals based in the UK.

When the finance officials were asked about the impact of Brexit, 58 per cent professionals said their business has forecast an increase in costs, with 49 per cent expecting costs would rise between 1 and 10 per cent.

However, the rest 42 per cent said they are being less ambitious with their 2019 revenue forecasts due to Brexit.



Furthermore, 14 per cent professionals expect to spend more than 1 million pounds on Brexit planning, while 33 per cent expect that Brexit would have a continued impact on finances beyond 2020. At least 75 per cent said they are concerned about the possibility of a no-deal Brexit, with 40 per cent being very or extremely concerned.



The survey also noted their views on Brexit preparations. It said while the majority of businesses (77 per cent) have taken some steps to prepare for Brexit, only a fifth (20 per cent) have undertaken a full risk assessment on the impact Brexit could have on their business.

Asked about how Brexit has affected their investment strategy, 11 per cent finance professionals said they have put UK projects and expansion plans on hold while 8 per cent are investing more into business activity in the EU. The 7 per cent are investing more into business activity in the UK and 5 per cent are investing more into business activity outside the EU.



As a result of Brexit, 17 per cent finance professionals said there was more pressure to analyse risk and provide advice, while 15 per cent said there was more pressure to reduce cost.



However, 20 per cent said it was more difficult to provide strategic guidance due to the level of uncertainty.



UNI SW ADG 1810