Brexit - Updated Statement of Readiness

30 November 2020

At the time of writing, the UK has resumed trade discussion over negotiations with the EU. We are now in the transition period until 31 December 2020, by which time the UK is expected to have settled an agreement on the future relations with the EU.

Like other businesses, PEAK is monitoring the situation on a daily basis and we continue to take the necessary proactive steps and actions to ensure business continuity and supplies for all our customers.

We hope that a trade agreement on Brexit will emerge prior to the 31st of December, but if it does not, we are prepared. As a global company, international supply of goods and services to customers around the world is a core part of our day-to-day business, and as a result, we have the ability to rapidly adapt our supply chain and logistical networks if required. We would therefore like to assure our customers across the globe that our trading operations will continue to run business as usual, whilst we take into account any changes which may come into place, including tariffs, customs, tax and compliance changes. Our priority will always be supporting our customers to the highest of standards.

We are well-prepared for any direction the negotiations may take, and we remain confident in our ability to deliver exceptional service and support for all of our customers around the world in line with our commitment as Your Local Gas Generation Partner of choice.

Brexit - Full original statement

11 January 2019

Since the United Kingdom (UK) referendum result on membership of the European Union (EU) in June 2016, PEAK Scientific has been working to assess and mitigate the likely impacts of ‘Brexit’ on our customers and suppliers under a variety of potential outcomes. Given the continued uncertainty around the final terms of Brexit, even as we commence 2020, we have put in place contingencies over the last few months such that we are prepared and ready no matter the outcome.

As ever, our chief priority at PEAK Scientific is to ensure seamless continuity of supply and service to each and every one of our customers across the globe, regardless of outcomes and potential short-term effects on customs and international logistics. While we continue to hope that a business-friendly deal can be reached, we are reasonably certain that our ability to do business with our global customer base will not be materially affected to any significant degree, even under the harshest exit.

This communication is intended to give our customers, distribution and supply chain partners reassurance and confidence that we are ready to maintain ‘business as usual’ through any transition period after 31 December 2020.

Brexit mitigation planning

In our initial risk assessments we started before 2020 (which we continue to update), we have identified a number of key areas of focus for a potential Brexit impact, including:

• Product delivery lead times
• Customer service and scheduled maintenance provision
• Financial performance, including the potential impact of tariffs
• Employees and mobility
• Regulatory frameworks and compliance

Here at PEAK Scientific we have full confidence in the skill and expertise of our administrative and logistical teams and their understanding of export procedures to be able to cope with and adapt swiftly to any changes necessitated by Brexit. Our established Brexit project group has fully assessed each area and likely impacts have been evaluated.

Furthermore, we maintain close partnerships with a network of leading freight forwarders and agents who have international status. Together we are ready and prepared to adapt and respond to any potential added complexities – short term or long term – that may arise from Brexit in the event of tariffs being introduced on trade between the UK and EU.

Brexit and implications for CE Marking

In line with recent UK government advice on CE markings for products sold in the UK please find PEAK Scientific’s full CE Brexit Statement here. This will have no material impact for customers outside of the UK.

Maintaining excellence in delivery

By maintaining buffer stocks at key locations in North America, continental Europe (EU) and in Asia, we are confident in being ready to maintain ‘business as usual’ delivery in terms of lead times on new gas generator products and in our ability to rapidly support existing end user customers with on-site maintenance support. Our standard lead time of 4 weeks will continue to be assured for the majority of our products. Please note some infrequent and custom-specified products may require additional lead times (6 weeks) as is currently the case.

As part of mitigation plans, in reviewing planned annual maintenance schedules globally, we may in some instances elect to ship service kits directly to end customer sites ahead of schedule. This is to ensure there is no delay in performing scheduled maintenance at customer sites where material would ordinarily be shipped from UK close to the service date. In the event that we do send out maintenance kits earlier than usual, we will notify all customers affected.

PEAK Scientific remains confident in our ability to deliver exceptional service and support for all of our customers around the world in line with our commitment as Your Local Gas Generation Partner of choice.

Background

PEAK Scientific is a global business headquartered in the UK, where all manufacturing is based. <10% of sales are made to UK customers, with the majority of customers located in North America, India, China and mainland Europe, PEAK Scientific also serves customers in SEA, Japan, Oceania and Latin America. PEAK currently has a headcount of 500+ employee, 220 of which are based in the UK (among which a number are EU nationals).

PEAK Scientific operates offices and warehouse capacity outside the UK including substantial facilities in North America and Asia with planned contingencies to hold surplus stock at some of these sites, ready to ship globally in the event of any short-term logistical delays exporting from the United Kingdom.