Rolls-Royce share price soars as it unveils £1.5bn warchest

Rolls-Royce’s share price has soared after the firm announced that it had secured a £1.5bn revolving credit facility to help mitigate against the collapse of the civil aviation sector in recent weeks.

The Derby manufacturer said this morning that it was cutting costs and reducing salaries across its workforce by at last 10% over the rest of the 2020.

It also became scrapped its final dividend payment. By close on Monday afternoon, the firm’s share price was up over 18.3% to 297.7p.

Warren East, chief executive, said: “We find ourselves in unprecedented times, both as a company and as a key player in vital power markets across the world. Our priority is to do everything we can to safeguard the lives and livelihoods of our people and to play our part in helping our customers, partners and communities.

“We are taking significant measures to strengthen the operational and financial resilience of our business. I would like to thank all our 52,000 colleagues worldwide for their support, dedication and hard work at this time when difficult decisions are being made.”