Rolls Royce Posts FY Underlying Operating Profit; Warren East To Step Down As Chief Executive

Rolls Royce Holdings plc (RYCEF.PK,RR.L,RYCEY.PK) posted fiscal year underlying operating profit of 414 million pounds compared to a loss of 2.01 billion pounds, prior year. The prior year underlying result included 1.3 billion pounds of one-off charges mostly related to the impact of COVID-19 on Civil Aerospace. Underlying profit per share was 0.11 pence compared to a loss of 67.48 pence. Underlying revenue from continuing operations was 10.9 billion pounds, compared to 11.4 billion pounds, previous year.

The Group noted that the return to profit reflects the higher gross profit in the year partly offset by lower contribution from JVs and associates.

Fiscal year loss before tax narrowed to 294 million pounds from a loss of 2.80 billion pounds, prior year. Profit per share from continuing operations was 1.47 pence compared to a loss of 51.81 pence.

For the year ended 31 December 2021, statutory revenue was 11.2 billion pounds, 2% lower compared with 2020 driven by a decline in Civil Aerospace revenue, due to lower OE deliveries and shop visit volumes.

For 2022, the Group expects low-to-mid-single digit revenue growth and expects operating profit margin to be broadly unchanged. The Group expects to generate modestly positive free cash flow in 2022, seasonally weighted towards the second half of the year.

Rolls-Royce also announced that Warren East, Chief Executive, has decided to step down at the end of 2022. The Board will now launch an extensive search for his successor.

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