LONDON (Alliance News) - E-procurement software provider EU Supply PLC on Wednesday said it is continuing to monitor the effect of the UK's decision to vote to leave the European Union and expects the long-term impact to be "limited".
EU Supply said much of its current operating costs are in euros, Swedish krona and other non-sterling currencies. This is only partially-offset by non-sterling revenue, so any fall in the value of sterling will have a negative impact on sterling-reported costs.
"The exposure is partly hedged as most of the group's cash has been maintained and/or exchanged into the foreign currencies set out above broadly in accordance with the group's forecasted needs in advance of the UK referendum," EU Supply said.
The company said the long-term impact of Brexit will likely be limited as the need for effective competition in contracts in the UK should remain robust irrespective of the country's place in the EU.
EU Supply affirmed its targets for 2016, assuming no further major move in currency exchange rates emerges.
EU Supply shares were down 9.2% to 5.9 pence Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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