Published by Insider Media
SOLID PROGRESS AT ROLLS-ROYCE
The chief executive of Rolls-Royce said that the business has made solid progress after returning to pre-tax profit during the first half of its financial year. The company also revealed that it has entered into exclusive discussions with a consortium for the sale of ITP Aero.
Underlying revenue for the Derby-headquartered manufacturer dropped to £5.2bn in the six months to 30 June 2021, down from £5.4bn in 2020.
Its statutory group revenue also fell to £5.1bn from £5.6bn.
However, Rolls-Royce made a statutory pre-tax profit of £114m, up from a loss of £5.2bn.
Underlying pre-tax profit reached £133m from a £3.2bn loss over the same period.
Chief executive Warren East said: "Our continued focus on the elements within our control, together with a good performance from defence and order intake recovery in power systems, have enabled us to deliver solid progress in the first half.
"The benefits of our fundamental restructuring programme in civil aerospace are evident in our reduced cash outflow and improved operational efficiency. This leaner cost base, together with a strong liquidity position, gives us confidence in our ability to withstand uncertainties around the pace of recovery in international travel and benefit from the eventual rebound.
"We are making disciplined investments in the new opportunities to drive future growth, particularly in net zero power, where we are leading the way with innovation and engineering excellence.
"Our net zero pathway and targets, announced in June, set out our plan to enable the sectors in which we operate achieve net zero by 2050 by driving step-change improvements in engine efficiency, helping accelerate the take-up of sustainable fuels and developing new technologies."
Additionally, Rolls-Royce has confirmed that it has started talks with a consortium led by Bain Capital on a potential sale of ITP Aero.
ITP Aero is a Spanish aero engine and gas turbine manufacturer which employs approximately 4,300 people.