Worldpay Group plc – Annual report – 31 December 2016
Principal risks and uncertainties (extract)
UK membership of the European Union
Following the UK’s decision to leave the European Union (EU) in June 2016, we have continued to analyse what this could mean for our business. A possible effect on Worldpay continues to be macroeconomic disruption, which may impact a proportion of the merchants we serve in the UK and Europe, and therefore our transactional flows. As a significant proportion of the regulatory regime we operate within comes from the EU, an exit may also change the framework applicable to our European operations.
However, given the global nature of our business and our experience working across multiple regulatory regimes, our expectation remains that the UK’s exit from the EU will not have a material effect on our business overall. We continue to monitor developments in the ongoing negotiations and potential timings of exit.
In addition to the business impacts noted above, there was a significant movement in foreign exchange rates in 2016 following the referendum in June. The impact of this on the Group’s results is explained in more detail in the Financial review on page 55. We expect to see continued volatility in foreign currency exchange rates in the future and the impact of these will continue to be monitored and assessed as appropriate.