Rolls-Royce reports ‘continued good performance’

Rolls-Royce has reported “continued good performance” with the engineering giant’s transformation moving with “pace and intensity”.

In a recent trading update, the firm, which has its Civil Aerospace and Defence divisions in Derby said current trading was in line with its full-year 2024 guidance.

This means it is on course to achieve underlying operating profits between £2.1 billion and £2.3 billion and free cash flow between £2.1 billion and £2.2 billion.

In terms of its businesses, Rolls-Royce said that demand in its Civil Aerospace and Defence divisions “remains strong”.

Its mini nuclear power stations business, Rolls-Royce SMR, is also making significant headway.

In September, it was named as the preferred supplier for the construction of Small Modular Reactors by the government of the Czech Republic and the Czech State utility, ČEZ Group.

This has been enabled by a strategic investment by ČEZ into Rolls-Royce SMR and an exclusive commitment to deploy up to 3GW of electricity in the Czech Republic.

In the UK Government’s competition, Rolls-Royce SMR has been shortlisted as one of four potential SMR providers.

Chief executive Tufan Erginbilgic said: “Our transformation of Rolls-Royce into a high-performing, competitive, resilient and growing business continues with pace and intensity.

“Continued good performance year to date gives us further confidence in the delivery of our 2024 guidance despite a supply chain environment which remains challenging.

“We are also making good progress towards our mid-term targets, with a front-end loaded delivery of profit and cash flow improvements.

“There is more we still need and want to do, as we expand the earnings and cash potential of Rolls-Royce.”