Rolls-Royce hails ‘improved’ performance

Rolls-Royce has reported an “improved” performance for its latest financial year, including a surge in underlying profits.

The engineering giant, which has its civil aerospace and defence divisions in Derby, said that for the year to 31 December underlying operating profits increased from £414 million to £652 million, while underlying pre-tax profits grew from £36 million to £206 million.

Meanwhile, revenues increased from £11.21 billion to £13.52 billion.

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

Chief executive Tufan Erginbilgic, who took over the post from Warren East at the beginning of the year, 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.”

Rolls-Royce said that in 2022 large engine flying hours in its civil aerospace business grew by 35% year on year as the recovery in international travel continued.

Over the year, it secured new large engine orders from Malaysia Aviation Group, Norse Atlantic Airways and Qantas.

Mr Erginbilgic said: “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.”