Manufacturer’s chairman lambasts Brexit uncertainty

The chairman of Birmingham-based bathroom fittings manufacturer Samuel Heath has said Brexit uncertainty is making it “more difficult than ever” to forecast the immediate position of the company.

In the company’s preliminary results for the year to the end of March, Sam Heath said that the uncertainty around Brexit has caused “all sorts of continuing problems”.

“These are perhaps surprisingly not led by uncertainty of sales to business customers within the EU, but much more seriously from our supplies from there,” he said.

Heath added that the uncertainty is having “most importantly of all a very bad effect on our business, and our future prospects, with our London and South Eastern customers within the UK”.

“It is therefore more difficult than ever to forecast where we might be in 12 months’ time. You can imagine that I do not enjoy being so indecisive, but it is a unique situation we find ourselves in. Perhaps I could add, as a company listed on the London Stock Exchange since 1890, there must have been other times equally difficult, which we managed to get through.”

However, he added that overall business activity has held up well, helped by its considerable investment in “excellent” designs and products, together with that in plant, machinery and IT systems in order to manufacture them efficiently.

Heath’s comments came as the company reported its annual results, in which revenue was a little down, but underlying operating profits improved.

Sales revenue was £13.89m (2018: £14.35m) and profit before tax was £0.88m (2018: £1.18m) after the exceptional item relating to its pension fund which it had to recognise this year.

The operating profit was better than last year at £1.38m (2018: £1.34m) reflecting savings made through overheads.

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