Iberdrola building

Iberdrola has responded to claims that its strong presence in the UK leaves the company exposed as a result of Brexit.

On Wednesday the Spanish utility reported a small decline in net profits for the first six months of the year to €1.46bn, but dismissed the possibility of exposure to the UK market.

Despite the steep decline in sterling as well as downward revisions to UK growth forecasts, Iberdrola said on Wednesday that it was sticking with its target of 5 per cent growth in earnings before interest, tax, depreciation and amortisation (Ebitda) for 2016.

“The company also expects its net profit to increase by a slightly higher rate for 2016,” it added. “This means that earnings for the year will not be affected by factors such as the result of the EU referendum in the United Kingdom.”

FT reports that Iberdrola is seen as one of the international companies that is most at risk from the economic consequences of last month’s decision by UK voters to leave the EU. Last year, the Madrid-based group booked more than a quarter of its net earnings in Britain, where it owns Scottish Power.

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