ROLLS-ROYCE POSTS “IMPROVED” PERFORMANCE

Rolls-Royce has posted an “improved” performance for its latest financial year with underlying profits surging, though statutory pre-tax losses reached £1.5bn. The manufacturing giant’s chief executive added that the group is “capable of much more”.

The listed company has reported a revenue of £13.52bn for the year to 31 December 2022, up from £11.21bn in 2021.

Underlying operating profits jumped from £414m to £652m, with underlying pre-tax profits also up from £36m to £206m. However, statutory pre-tax losses widened from £294m to £1.5bn.

Rolls-Royce noted that it benefitted from strong new order wins in civil aerospace and defence and a record order book in power systems.

Chief executive Tufan Erginbilgic said: “It is an honour to lead Rolls-Royce, one of the world’s most trusted brands and a business with strong positions in growing markets. Our people take tremendous pride in our innovation and engineering solutions. Together, we must now move at pace and harness that pride to create a high-performing, growing and competitive business.

“While our performance improved in 2022, we are capable of much more. Our transformation programme will improve our efficiency and commercial outcomes, and deliver a sustainable reduction in working capital.

“This will require a winning culture, underpinned by more effective performance management and a shared determination to deliver cash and reduce debt. Our success will enable us to reward investors for their support and invest in future growth.”

He added: “Our transformation programme is already underway and is moving at pace. It will include a strategic review so that we can prioritise our investment towards the most profitable opportunities. We will report the findings together with our medium-term goals in the second half of this year.”