Rolls-Royce Group PLC (RR.)

[AsleepInYorkshire]

Rolls-Royce tests a jet engine running on hydrogen

The engine itself is almost completely conventional. It is a Rolls-Royce AE-2100A gas turbine, a design used widely on regional aeroplanes around the world.

One to watch I think

AiY(D)

[GrahamPlatt]

Running Rolls Royce (and ARM)

https://www.bbc.co.uk/sounds/play/m001j4bz

[funduffer]

2022 Results announced today:

· Improved orders, revenue, profit and cash flow in 2022

- Strong new order wins in Civil Aerospace and Defence and a record order book in Power Systems

- Underlying operating profit of £652m, £238m higher than the prior year, with the increase driven by Civil Aerospace and Power Systems

- Free cash flow from continuing operations of £505m, £2.0bn higher than the prior year, led by engine flying hour recovery

- Net debt of £3.3bn, down from £5.2bn at end 2021, due to disposals and improved cash flow

· Focused on delivering significant performance improvement in 2023 and beyond

- Transformation programme in place to deliver further performance improvements from 2023, informed by rigorous benchmarking

- Underlying operating profit guidance of £0.8-£1.0bn and free cash flow of £0.6-£0.8bn in 2023; includes early benefits from transformation

- Strategic review underway to identify investment priorities; medium-term financial targets to be set in the second half of 2023

RNS here: https://www.investegate.co.uk/rolls-roy ... 00077744Q/

The market obviously like these results - share price up 22% today!

FD

[ReformedCharacter]

...The market obviously like these results - share price up 22% today!

FD

Interesting article in the DT urging ministers to support their mini-nuke program:

https://www.telegraph.co.uk/business/2023/02/23/rolls-royce-plans-overhaul-new-boss-calls-burning-platform/

The mini-nuke business could be interesting in more ways than one.

RC

[idpickering]

ROLLS-ROYCE HOLDINGS PLC AGM STATEMENT AND TRADING UPDATE.

Rolls-Royce Holdings plc is holding its Annual General Meeting today. In his address to shareholders, Chief Executive Tufan Erginbilgic will comment:

"We are transforming Rolls-Royce into a high quality and competitive business with a strong balance sheet and growing profit, cash flows and returns. We are already benefitting from the actions we are taking as well as recovery and growth in our end markets. We announced several changes to the executive team in March to support the transformation, adding leaders with proven track records of delivery and high-performance. We are making good progress and our financial performance year-to-date is in line with expectations. I'd like to thank everyone at Rolls-Royce for their hard work and commitment so far. I am confident that, together, we can achieve great results."

Trading update to 30 April 2023

Our financial performance is improving reflecting positive changes driven by our transformation programme workstreams and good end market demand for our products and services. Supply chain management remains a key operational challenge for us as original equipment and aftermarket services volumes increase, especially in Civil Aerospace. Our financial performance is in line with our expectations at the time of the full year results on 23 February. Our underlying operating profit guidance of £0.8-£1.0bn and free cash flow guidance of £0.6-£0.8bn in 2023 is unchanged. We anticipate our free cash flow generation will be seasonally weighted in the second half of the year, as previously indicated.

https://www.investegate.co.uk/announcement/7521669

Ian (No holding).

[idpickering]

Results of Annual General Meeting.

The Annual General Meeting of Rolls-Royce Holdings plc (the Company) was held at 11.00am on

11 May 2023 at the Aztec Hotel, Aztec West, Almondsbury, Bristol, BS32 4TS.

The poll results on all 19 resolutions at the Annual General Meeting were as follows. Resolution 12 was withdrawn prior to the Annual General Meeting as Sir Kevin Smith stepped down on 11 May 2023, as announced on 10 May 2023.

https://www.investegate.co.uk/announcement/7523386

Ian.

[funduffer]

As an ex-employee and hence substantial shareholder, I am pleased to see RR on the road to recovery after the catastrophic effect of the pandemic on its business.

I do feel the future may be in its nuclear division, and am pleased to see the small modular reactor project advancing.

Civil Aerospace should be a cash cow for a couple of decades, so chance for a transformation of the business.

Will be interesting to see what the new guy does.

FD

[idpickering]

Rolls-Royce creates more efficient organisation.

Rolls-Royce to create simpler, more efficient and effective organisation

to continue to deliver world class products

Delivering better customer outcomes through increased focus on efficiency, simplification and enterprise-wide synergies to create a more agile business

A proposed 2,000-2,500 reduction in roles worldwide

Strengthening capabilities to ensure operational and commercial skill matches engineering and technical excellence

https://www.investegate.co.uk/announcem ... on/7820338

Ian (No holding).

[Padders72]

These have quietly ticked up around 20% since the last post directly above. It seems the market likes the news about headcount falls and cost savings. It’ll be interesting to see if it lasts, or drifts back down again once the news flow rate slows. The profit targets announced yesterday are very ambitious.

[idpickering]

2023 Full Year Results

Underlying operating profit of £1.6bn and underlying margin of 10.3%, reflecting the impact of our strategic initiatives, with commercial optimisation and cost efficiency benefits across the Group

Record free cash flow of £1.3bn driven by operating profit and continued LTSA balance growth

Return on capital more than doubled to 11.3% reflecting improved operating profit, disciplined capital allocation and working capital management

Statutory net cash flow from operating activities of £2.5bn, £1.0bn higher year on year

Net debt of £2.0bn, down from £3.3bn at the end of 2022, as we strengthen the balance sheet and build resilience

2024 guidance: continued progress with underlying operating profit between £1.7bn and £2.0bn and free cash flow between £1.7bn and £1.9bn

https://www.investegate.co.uk/announcem ... 23/8050037

Ian (No holding).