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Cantel (UK) Ltd Brexit Strategy

Q – Have Cantel (UK) Ltd made provision for a no deal Brexit?
A – Yes –Cantel (UK) Ltd is following government advice that a deal is the most likely scenario but are also preparing for a ‘no deal’ scenario. This may change in the near future and Cantel (UK) Ltd staff constantly monitors Government and Industry releases to ensure the latest information is used to update the strategy.

Q – Why hasn’t Cantel (UK) Ltd already established a strategy previously?
A – The UK Government and EU Commission have yet to finalise a deal for the UK’s departure from the European Union. It is still the intention of both parties to agree such a deal before 31st December 2020, therefore, Cantel (UK) Ltd are working on solutions to mitigate risks for both deal and no deal scenarios.

Q – Where do you hold your stock to supply customers?
A – At our UK warehouse based in Shoeburyness, Essex.

Q – What are your contingency plans for Brexit?
A – We are currently reviewing the updates from the government on a daily basis but are preparing to review our pricing structure and stockholding to accommodate any changes that may be introduced.

Q – What will be the lead time on orders for consumables after Brexit?
A – Our lead time will remain the same and we will adjust our stockholding to accommodate.

Q – How will Northern Ireland be supported if a hard border is introduced in Ireland?
A – If a hard border is introduced this will make it understandably difficult for the territory to be supported by our distributor in the Republic of Ireland. We will therefore, review our ability to support the region directly alongside the current support being provided through our distributor GS Medical.

Q – Will Cantel (UK) Ltd.’s product pricing increase?
A – It is not Cantel (UK) Ltd.’s intention to increase pricing, however there may be a requirement to amend some pricing depending upon potential tariffs implemented for the importation of certain goods in the longer term

Q – Will Cantel (UK) Ltd carry sufficient stocks to avoid back-orders?
A – Cantel (UK) Ltd is already planning for the possibility of a “no deal” Brexit and is looking closely at required stock levels to maintain contingency for both direct UK Customers, as well as UK National Frameworks and Procurement Hubs.

Q – Will there be delays in importation of Cantel (UK) Ltd products from the EU?
A – It is possible that Cantel (UK) Ltd may experience some level of delay with the importation of goods from EU Countries. We currently import products from Italy, France and Germany which may be affected by an increased level of customs clearance following a potential “no deal”. As part of contingency planning, Cantel (UK) Ltd is maintaining increased minimum stock levels of imported products, easing any potential for disruption in the ability to supply to UK Customers.

Q – Where are your products manufactured?
A – The majority of products are manufactured in the USA, with a smaller percentage manufactured in the UK, Germany, France and Italy. Cantel (UK) Ltd also manufactures in the Far-East.

Q – What contingencies do you have in place or are being implemented?
A – Cantel (UK) Ltd is closely monitoring all political developments and conducts regular Brexit planning meetings. Stock levels and the potential for increased lead times on manufactured products and service parts are under constant review in order to plan for and implement stock-holding/order frequency strategies around Brexit.

Q – Will Tariffs affect pricing models?
A – There is a possibility that increased tariffs (dependent upon the Brexit deal, or no deal scenario) may have an adverse effect on Cantel (UK) Ltd.’s pricing model. Cantel (UK) Ltd has held pricing in the majority of our product categories for a number of years, despite continued price pressures and increases in the cost of raw materials. It is hoped that this position is maintained, although it cannot be ruled out, should a “no deal” Brexit occur.

Q – What contingency plans have been put in place to safeguard inventory supplies to UK hospitals?
A – Cantel (UK) Ltd is continually reviewing stock levels and will update these to safeguard supplies of stocked lines to existing customers. Any forecast information that can be supplied by individual hospitals/Trusts to Cantel (UK) Ltd Sales teams, will be reviewed.

Q – Are some freight forwarders offering better service?
A – Cantel UK has long term agreements in place with preferred freight forwarders. However, to mitigate against anticipated delays, we are reviewing this list to increase flexibility. We are also working with our global freight partners to maintain access through current and alternative transit routes after the end of the transition period.

Q -Will imported products continue to be sold in UK?
A – Yes, the UK Government has already stated that CE marked devices from EU27 countries will be recognised for use within the UK post Brexit until 1st January 2022.

Q – What will the cost implications be?
A – The MHRA and Notified Bodies have indicated that there will be additional costs for regulatory changes, but as yet, have not indicated what the level of cost will be.

Q – Will Cantel (UK) Ltd discontinue any products that are currently imported into the UK?
A – It is unlikely that any products will be discontinued in the UK as a result of Brexit

Q – Will the company discontinue any products that are exported?
A – This will depend upon the difficulty in exporting to the EU27 nations but, at the moment, Cantel (UK) Ltd has no plans to cease any exports from the UK post Brexit.

Q – Will the quality of Cantel (UK) Ltd products be affected?
A – No. Cantel (UK) Ltd will continue to uphold the quality of its products and, if necessary, additional inspections will be implemented if new legislation requires it.

Q – Will accreditation to ISO Standards be affected?
A – No, compliance to ISO 13485:2016 remains a requirement after Brexit.

Q – Will any additional registrations be required after Brexit?
A – At this point there is no anticipated additional registrations required related to Brexit.

Q – Are there any Service parts sourced outside the UK?
A – Yes there a number of parts – dependent upon machine type. Where parts are sourced from EU and the US, Cantel (UK) Ltd is closely monitoring all political developments and conducts regular Brexit planning meetings. Stock levels and the potential for increased lead times on our manufactured products and service parts are constantly reviewed in order to plan for and implement stock-holding/order frequency strategies before, during and post Brexit

Q – Will Brexit affect the cost of my service contracts?
A- It is not Cantel (UK) Ltd’s intention to increase contract pricing; however, there may be a requirement to amend some pricing depending upon potential tariffs implemented for the importation of certain goods in the longer term

Q – Are Cantel (UK) Ltd financially prepared for the effects of Brexit?
A – Cantel UK Ltd is a wholly owned subsidiary of Cantel Medical, a global organisation listed on the New York Stock Exchange (Stock ID: CMD).

Q – Will Cantel (UK) Ltd.’s workforce be affected by Brexit?
A – There are currently no risks foreseen regarding the workforce employed by Cantel in relation to Brexit