James Bream, General Manager, Katoni Engineering

How Katoni Engineering is preparing for Brexit

Katoni Engineering is an engineering, procurement and construction business focused on the oil and gas sector and based in Aberdeen with activity and bases overseas too. The company employs a core team of over 35 with further team members supporting offshore activities. Securing the Brexit Support Grant is critical to help the company prepare for Brexit, according to James Bream, General Manager at Katoni Engineering.

“We’ll be investing in staff training, consultancy and legal support as well as visiting suppliers and clients critical to our growth. These trips will allow us to listen to views and plan more robustly,” said James.

  • Reducing risk for Katoni
  • Securing customer relationships and revenue
  • Maintaining and understanding supply chain issues and financial risk

What challenges does Katoni face with Brexit uncertainty?

To safeguard business continuity, Katoni felt it had to take action aligned to its growth strategy to be properly prepared for a no-deal Brexit.

Katoni has existing clients who operate in Europe and clients and suppliers with headquarters in Europe who expect the company to be ‘Brexit ready’. The company’s procurement and construction activities are growing. This means that Katoni is increasingly placing orders for European goods, such as lighting systems and valves, from locations like Italy, Germany or Holland.

The company doesn’t currently procure goods outside the EU on any scale and considered it important to fully assess the potential. Changes to VAT, customs or other arrangements that could create risk for staff, processes or clients.

Reasons for applying for the grant

Katoni wants to improve its knowledge base and reassure its clients. However, without financial support it will be unable to train the right number of staff required to spread risk and knowledge properly.

Katoni would like to visit overseas clients face-to-face to maintain its relationships. Without funding to support its travel costs, this won’t be an option. This could lead to loss of credibility or a view from clients that they are unimportant.

And, the company would most likely take a ‘wait and see’ approach to legal and financial issues. This is risky for a business of its nature, where turnaround times are generally short.

It’s likely the company would also delay plans for growth in its procurement and construction business, if it cannot be sure of financial impacts and delivery times.

Business support from Scotland's enterprise agencies

The Brexit Support Grant will make a huge difference to Katoni to help it:

  • Train three of its staff to focus on changes to customs and the implications of no longer being a member of the EU
  • Get consultancy/legal support to identify any issues which may arise from Brexit. For example, for areas including, but not limited to, contractual issues with customers, payment issues and VAT
  • Visit key suppliers and suppliers critical to their future growth to understand what impacts Brexit will have and create ways of working to mitigate any potential impacts
  • Visit existing and future clients in its pipeline to discuss potential issues and show its plans to manage this

Need funding and advice to help your business with Brexit planning?

Find out what the Brexit Support Grant can do for you. Read our guidance, terms and conditions and get your application started.