While for many it was total shock followed by plummeting share prices, speculation and a rise in reported hate crime. There were winners post referendum both short term and in the months following the vote. Many UK businesses chose to adapt or turn the speculation to their advantage while others saw growth from foreign business seeking to capitalise on the falling value of the pound. Today we take a look back at some of the Brexit winners and losers.
Continuing their strong growth were budget high street retailers like Poundland. Already seeing strong growth on the current economic climate, Poundland reported record sales of over 1 Billion pounds for 2016/16
The budget clothing retailer – Primark, owned by Associated British Foods, said the clothing chain’s UK profit margins would be hit slightly by sterling’s fall but profits earned outside the UK will be better than expected because of the weak pound.
Companies like Arrow Global, one of the largest debt management and debt buying companies in the world will see more and more defaulted debt in the wake of Brexit allowing them to pick up the pieces.
For those who hedged their bets the rewards were fast and plentiful but the real winners were the companies’ facilitating the exchanges. Companies like interdealer brokers ICAP reported massive surges in trades in the days following the Brexit vote
With interest rates already at an all time low and further cuts possible, UK Banks are facing increasingly tough times while foreign banks are seeing an upturn with UK money being moved outside of the UK and the increasing value of gold.
Already facing troubled times and increased competition from cut price online estate agents, high street estate agents were dealt another blow post referendum which has seen a further downturn in in property markets with people unwilling to buy or sell during the uncertain times.
The most striking impact of the referendum was felt almost immediately with the pound suffering it’s worst drop against the dollar on record. Despite some small signs of recovery the pound is still suffering. The knock on effect of the weak pound is soaring costs of imported goods and rising living costs.