Pension After a long period during which bond yields remain at or near historic lows, the reporting year saw yields increase in response to central bank interest rises and broader trends within the financial markets. This saw our total pension liability fall significantly during the reporting year, making it unlikely that we will need to make any further additions to our planned future contributions of £12.4m. Employee distribution Our staff faced considerable pressures as they helped customers to navigate the uncertainty of the pandemic. We are also more aware than ever that the talents of our people are central to our current and future success. It was therefore fitting that we were able to distribute an employee dividend of £1.4m and bonus pool of £5.1m (totaling £6.5m), in line with our status as an employee benefit trust (EBT). Outlook With a strong order book, margin growth and the continued application of our strategy, we are well placed to take advantage of what appear to be positive trends within our key markets. In general terms, the retreat of globalisation appears to be intensifying a more regional approach, and in doing so reversing what many people see as years of underinvestment in Western defence markets. Security and environmental concerns are driving added interest in digitally-enabled, autonomous ships using cleaner energy sources. Higher commodity and shipping costs may make these investments more supportable. Finally, as climate risk concerns come to the fore and regulation increases, we also see opportunities for our climate and environment related services to grow. By continuing to progress our strategy (as outlined on pages 10 and 11), we will be well positioned to take advantage of these opportunities ahead. David McSweeney, Chief Financial Officer, BMT PLEASE NOTE: This text and publication focus mainly on continuing operations during the reporting year and it measures progress against the previous year on a like-for-like basis. In doing so it does not include the impact of an onerous contract which led to significant liabilities during the previous reporting year but has now been addressed without further liability. Please see our statutory accounts for further explanation and financial details on BMT’s website – www.bmt.org ‘With a strong order book, margin growth and the continued application of our strategy, we are well placed to take advantage of what appear to be positive trends within our key markets.’ 29
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