I have not wished to engage in discussions involving the vote of SCAA members regarding Unification with the SCAE. Despite the fact that our company, Marco Beverage Systems Ltd, has been a member of the SCAA for a number of years, I do not wish to stand accused of being an outsider interfering where not wanted.
However, I believe that I need to address one important point that is being argued against Unification, which is the point that BREXIT endangers the Unification and thus the future of the SCAA. This I believe does not match up to the facts and further is being used as a means to instill fear in the opportunity as well as divert attention away from the very real advantages and ultimately necessity to speak as one consistent and coherent voice in support of Specialty Coffee worldwide.
These are the facts regarding the SCAE exposure to Brexit.
1. The SCAE is a UK registered company limited by guarantee. As a result the SCAE reports its accounts in £ Sterling. This does not mean that its receipts, payments or bank accounts are only in £Sterling. While it may be a misunderstanding, it is mischievous to infer that because the accounts are reported in £sterling that all the transactions are in £sterling.
2. The income and expenditure of the SCAE is widely spread both in its source (primarily education, events and membership) and in its geography, of over twenty five countries.
3. Receipts in the past six months have been 85% in €euros and 15% in £Sterling. Payments have been 65% in €euros and 35% in £Sterling, indicating a future net benefit from the effect of BREXIT.
4. Opening up this spread we find further that while 85% of the receipts are in €euros that the source from which these euros are derived is wider still….as follows
Source of Income Europe Rest of World
Membership 68% 32%
Trainers 40% 60%
Education 36% 64%
Events. 75% 25%
5. The SCAE has three working bank accounts which today held the following disposition of its cash;
a. Euro Account 79%
b. Sterling Current Account 3%
c. Sterling Saver Account 18%
6. In addition to this, the SCAE continues to experience healthy growth. The growth is primarily based on membership fees, education income and events which generate positive cash flow and thus creates cash as part of this growth.
• Increase in income 2014 (£2,491k) to 2015 (£2,882) was 12%
• Budgeted income 2016 is £3,508k, up 22% on income in 2015. Results to date are in line with budget.
• Membership revenue increased by 19% in 2015 and is in line with a budgeted increase of 28% for 2016.
7. Ironically much of this information was presented for any member who wished to attend and ask questions at the SCAE AGM, held on the day of the BREXIT result. As usual few questions were asked and none that I remember related to BREXIT.
For these reasons I believe it is clear that the SCAE finances are healthy and robust. They are also well diversified to deal with negative impacts, including BREXIT.
Drewry Pearson, SCAE Past President