T Clarke takes £6.6m pensions hit from Brexit

T Clarke has taken a £6.6m hit on its pension scheme after a fall in bond yields caused by Brexit.

In half-year results posted this morning - which showed an increase in revenue and profit over the first six months of this year - the firm revealed it made an actuarial loss of £6.6m on its pension scheme, caused by a slide in bond yields resulting from “uncertainty in the financial markets in the run-up to and beyond the EU referendum”.

The firm said it will “explore our options with our professional advisers” for the scheme.

In its half-year results, the M&E specialist posted a 13% increase in revenue to £121.6m, up from £107.3m the previous year, while pre-tax profit inched up to £1.7m, up from £1.6m.

T Clarke said it was experiencing “excellent levels of activity” in the market despite the Brexit vote, with a number of major schemes currently being bid.

Commenting further on the EU referendum result, the firm, like many of its peers, said it was “too early” to judge the impact, but it said it should be shielded from the slump in the value of sterling on current contracts.

The firm said: “T Clarke does procure materials from the EU and items such as cable are quoted in dollars; however, currency fluctuations should not affect any current projects due to the method we use to lock in prices with our supply chain.”

The firm’s order book stood at £320m, unchanged from last year.