UK: A negative outlook for UK’s largest companies in the wake of Brexit

According to the most recent Boardroom Bellwether report published last week, more than half of the UK’s largest companies believe that leaving the EU will damage them. This report is conducted twice a year by governance body ICSA and involved 32 companies from the FTSE 100 and 47 companies from the FTSE 250. 
Whilst just under a third of companies stated that leaving the EU would have no result on their business, 54% believe it would have detrimental effects, and only 9% claimed it would be positive. Predictions made on the economic conditions were equally gloomy, with three-quarters of the companies expecting a deterioration over the next 12 months. 
Yet, only one company was considering relocating its headquarters, or a substantial part of the business, out of the UK into another European city, which could perhaps off-set some of the potential damages to the UK economy. 
Peter Swabey, ICSA policy and research director, said that on the whole, smaller listed companies had a more positive outlook than their larger public peers:
“This makes sense, as the FTSE 100 is more geared towards international trade where Brexit will likely have a greater impact. But it remains to be seen how sentiment will change across the board the closer we get to triggering Article 50,” he said.

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