New figures have revealed building services engineering companies are "conditionally optimistic" following the UK's decision to leave the European Union (EU).

In a recent industry survey, 46% of respondents believe Brexit will have an positive impact on their company in the next five years, while 19% believed it will leave a negative impact.

However, larger contractors with over £20 million of turnover are slightly less optimistic than their smaller counterparts, while 47% of respondents also believe the cost of materials will rise as a result of Brexit.

The survey showed a general tendency of contractors using skilled UK workers rather than EU workers, with 92% of participants stating they "do not rely on EU migrant workers". Only 25% agreed Brexit would "worsen the shortage of qualified workers".

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Overall, the sector has put maintaining access to the EU 'Single Market' at the top of its Brexit wishlist, followed by more control of employment law and the need to negotiate non-EU trade deals. Only 17% of respondents stated maintaining freedom of movement was one of their top priorities.

Steve Bratt, CEO of the Electrical Contractors' Association, said: "No matter how our relationship with Europe develops, our sector has a huge role to play in achieving UK business growth. This includes providing skilled jobs, fully functional buildings and infrastructure, and UK energy security.

"To help us achieve these aims, it's vital that we know the initial views of our sector as we head towards Brexit. Significantly, contractors are telling us that they want the UK to maintain access to the Single Market, while they are less concerned about ensuring freedom of movement."

The survey was carried out by the ECA, the Building Engineering Services Association and Scotland's trade association for the electrical industry SELECT.

(LM/CD)