Cheshire cheesemaker says business left with £250,000 'Brexit hole'
January 23, 2021, 12:24 pm

Cheshire cheesemaker says business left with £250,000 'Brexit hole'

Simon Spurrell (centre) said the loss in sales came after discovering he needed to provide a £180 health certificate on retail orders to consumers in the EU.

Simon Spurrell says his firm lost 20% of sales and will switch £1m investment to France

A commercial cheesemaker in Cheshire has been left with a £250,000 Brexit hole in his business as a direct result of the UK’s departure from the EU on 1 January.

Simon Spurrell said he has lost 20% of his sales overnight after discovering he needed to provide a £180 health certificate on retail orders to consumers in the EU, including those buying personal gift packs of his award-winning wax-wrapped cheese worth £25 or £30.

He says he had hoped to take part in the “sunny uplands” promised by the government post-Brexit but has instead seen the viability of his online retail come to a “dead stop”.

“Our business had high hopes of continued growth in the EU market, after seeing the avoidance of the no-deal and announcement of a free trade deal.

“What has only become clear in the last week is that our successful B2C online sales to EU consumers is now impossible to operate,” he said.

To save his business he will now have to switch a £1m investment he was planning to make in a new distribution centre in Macclesfield to the EU, with the loss of 20 jobs and tax revenue to the UK.

“It is a real shame because that means I’m now going to invest in France, provide French employment, and then contribute to the EU tax system, which was pretty much going against the whole reason that we were meant to be leaving.”

As small businesses up and down the country come to terms with the new and complex export red tape, Spurrell explained that he thought he was fully prepared for Brexit and had consulted with the Department for Environment, Food and Rural Affairs (Defra) and the National Farmers’ Union along the way.

He knew he would need customs declarations and health certificates signed off by vets to get his cheese into the EU after 1 January, and has successfully been getting pallets of the product across the Channel to wholesale customers.

But what he had not anticipated was the requirement for health certificates to accompany online orders from private customers.

“It’s as if someone forgot to negotiate this part of the deal, they forgot that there needed to be an exemption or allowance for the direct consumer sales.

“We ship to the USA, Canada, Norway, etc, all non-EU countries; we have never had a problem with at all. It is an oversight in the agreement that does not affect EU producers at all, but is a dead stop for all UK producers selling into the EU via online sales,” he added.

In an indication that neither the EU or the UK had time to translate the trade deal into practical guidance for business, Defra said it was continuing to “engage with the European commission and the EU member states to ensure that we share a common understanding of the EU’s export rules and how they should apply”.

Defra said it had worked hard to ensure UK businesses were not disadvantaged by the deal and that the farming and food minister Victoria Prentis would now be in contact with Spurrell and Defra officials to discuss further.

It also revealed that the number of vets or food-competent certifying officers now trained to issue the European health certificates had risen “from 600 to 1,500 and this number continues to grow”.

Sabine Weyand, the director general of trade at the European commission and Michel Barnier’s former deputy in the withdrawal agreement negotiations, posted a tweet in English saying “help us to help you”, with a link to a page on the EU’s Access2Markets website explaining “how to report a trade barrier”.

Spurrell’s Cheshire cheese company in Macclesfield and Hartington Creamery in Derbyshire turn over more than £4.3m a year and employ 25 people, and he planned to double staff numbers with a new fulfilment centre in March.

“I would be looking to employ another 20 people on top of the 25 we have now,” he said. “So, a substantial investment which we now have to review. I am still shell shocked by what has happened.”

Spurrell said he voted remain but had come to accept Brexit. “I am a positive person and always make the best of a bad situation and we thought, ‘Right, well let’s get used to this, let’s go with it. Let’s take on Europe from the UK,’ and that’s what we tried to do until 4 January when it was just every parcel was coming back,” he said.

His experience is being repeated right across the country with courier companies refusing to take small packages of animal or food originated products.

John Arbon Textiles in Devon was told by its courier company that its knitting wool, spun from local sheep fibres, would no longer be accepted with hauliers now trying to mitigate the risk of one package in their van or lorry causing their entire load to be delayed because they are missing a health certificate.

A government spokesperson said “there is extensive advice available to support businesses as they adjust to the new arrangements” and it was “vital” that traders ensured they had the correct paperwork for exports.

source: Lisa O'Carroll

Levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.