Lloydspharmacy “celebrates its diverse workforce and recognises a number of its employees are EU nationals”, it said in its financial reports for 2018-19, uploaded to Companies House on Sunday (January 5).

But the details of the final withdrawal deal to be agreed with the EU, “and how current or potential future employees react to it”, may “impact employee retention, as well as future recruitment”, the multiple said in the document.

It expects these “effects on the workforce” to “play out over a longer time period” than the UK’s actual departure from the EU – now expected by the end of December.

This will “allow the business to react as appropriate”, it added.

Potential business disruption

While the “ultimate terms of departure” from the EU “remain subject to some uncertainty”, the “principal risks…are around ensuring supplies of pharmaceutical and medicinal products to our customers remain uninterrupted”, Lloydspharmacy said in the document.

“The risk of fluctuations in exchange rates and associated effects on parallel trade flows have the potential to cause business disruption and profitability impacts”, it said in the document.

“An assessment has been performed of such potential supply risks and, where appropriate, plans are in place to secure supply and minimise business disruption.”

The multiple “continues to seek advice and clarification from the government regarding the withdrawal” from the EU and “constantly updates its plans to mitigate the…risks”, Lloydspharmacy added.

Lloydspharmacy told C+D this morning that it has “made our EU national colleagues aware of how they can apply for settled status and continue to support any of them that wishes to stay in the UK after we leave the EU”.

“Our company has strong roots in this country and in the rest of Europe, a broad portfolio and a sustainable business,” it added. “Our customers and patients trust in our teams and the services we provide and this will continue after Brexit.”