Rolls-Royce returns to profit

Derby manufacturing giant Rolls-Royce is back in the black after reporting results that its chief executive said are “ahead of expectations”.

Revenue was up by 9% last year to £16.3bn, while profits grew to £4.8bn before tax, from deficit of £4.6bn in 2016.

Warren East, chief executive, said: “Rolls-Royce made good progress in 2017. Financial results were ahead of our expectations and we achieved a number of important operational and technological milestones, but were impacted by the increasing cost and challenge of managing significant in-service engine issues. The business unit simplification and restructuring programme that we announced this January will drive further rationalisation and is a fundamental step in the journey started two years ago to bring Rolls-Royce closer to its full potential both operationally and financially.

“We are encouraged by the improving financial performance in 2017 with growing revenues contributing to improved profitability and cash generation. Looking forward, sustaining this improvement and delivering increasing cash flow generation will strengthen our position as one of the world’s leading industrial technology companies.”