Like many UK businesses, Domino has invested significant time and effort in extensive planning for all potential BREXIT scenarios, and has elected to prepare for the ‘worst case’: a default to WTO terms in the circumstance that a trade deal is not reached between the UK and European governments by January 1st 2021. The transition period has afforded us extra time to prepare, allowing us to continue to reduce the commercial risks associated with such an exit. We are currently in the final stages of implementing a series of contingency plans with the objective of protecting the supply of products to our customers. Domino has an industry leading reputation for putting the customer first and for excellence in customer service, and we will undertake every action we reasonably can to minimise external factors disrupting supplies during and post BREXIT, safeguarding the global supply chains we operate for our customers.
In real terms, this means we continue to increase the holding of all key inventory items as required by our plans and are well advanced in finalising all the new processes relating to the management of trade flows and customs procedures. Where appropriate we have also reconfigured our European supply network to optimise movement of goods between the UK and Europe. This extensive preparation means our customers can rest assured that our plans will be implemented and fully tested in time for the deadline.
I am mindful, that despite our best preparations, it is impossible to anticipate all eventualities of BREXIT whilst negotiations continue and the consequential implementation requirements are not confirmed. Like many businesses, we are dependent on the assumptions we have made and final outcomes of the negotiations. However, we have made extremely conservative assumptions and invested significantly to ensure that the impact on our customers is kept to a minimum.