the company’s products uncompetitive in Europe. However, he also sees great opportunities to develop new trade deals with other countries outside of Europe now the decision to leave the EU has been made.


“The worst case scenario would be to be cut-adrift on our own and subsequently see exchange rates plummet further,” he added. “Most of the products that we manufacture in Shrewsbury use materials imported from the EU and our costs have risen significantly in the last 12 months because of Brexit, which has obviously had a detrimental effect on profits and margins.


“The uncertainty is not good for business but all we can do is manage the situation as it exists. Every UK blender is in the same position, but most of our major competitors no longer manufacture in the UK, so they have a slight advantage.


“It has probably been one of the most difficult years I can remember in terms of managing our business, because there were so many variables with which to contend and most of them are far outside our control. Our volumes have risen rapidly, but because of issues such as the exchange rate, we have needed to manage the business very carefully.


“UK businesses are having to react to the fluctuating effects of currency trading and whereas 10 years ago, 75% of our purchases were in Sterling, now it’s more like 10%, as the US dollar and euro are our main currencies.”


LINK www.morrislubricants.co.uk


LUBE MAGAZINE NO.142 DECEMBER 2017


43


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