Former principal George Osborne‘S home wallpaper business said that Brexit increased its costs by 400,000 pounds because the company’s sales fell by more than 16% during the Covid-19 pandemic.
Osborne & Little is controlled by Osborne’s father, Sir Peter Osborne. He stated that from January 2021, the UK’s withdrawal from the European Union “has a direct adverse effect on profits”, resulting in unforeseen costs such as increased freight and imports of EU goods Tax increases. Britain, and then exported to Europe.
The company also stated that despite spending more time at home during the coronavirus lockdown, there is strong demand from shoppers who want to retrofit their interiors, but they still experience “supply delays” that affect transactions.
According to the accounts filed by the company building, the London-based company George Osborne As a director of the board of directors, he established a new distributor in Germany in March this year to help improve the flow of goods and reduce costs.
Although Osborne & Little calculated complaints about rising costs during the 2016 Brexit referendum, “Limited Impact” Leaving the European Union in the short term, but if the pound continues to weaken, it will bring “material benefits” to enterprises.
In the year ended March 31, sales fell to 24.3 million pounds, of which the United Kingdom and Europe fell by 18%, and its largest market, the United States, fell by nearly 15%.
although Brexit The problem is that Osborne & Little’s pre-tax profit changed from a pre-tax loss of 542,000 pounds a year ago to 558,000 pounds because it cut costs elsewhere, including reducing the number of employees.
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This figure was also driven by operating income from the government’s £510,000 holiday payment and £128,000 coronavirus business interruption loan program. The group borrowed a total of 3.5 million pounds from the CBIL program and also received 615,000 pounds of “salary loans” from the US government.
According to the accounts, Covid had a “huge impact” in the UK, but in the seven months ended October 31, sales increased by 30% compared to the same period last year, and profits also increased similarly. The company said that the series designed by decorator Nina Campbell performed exceptionally well.
The continued impact of Brexit on the British economy was highlighted last week in the food and beverage industry. Exports fell by 16% in the first nine months of 2021. The main reason for the decline was a 24% decline in sales to the European Union.
