Rolls-Royce powers on with record year

Manufacturing giant Rolls-Royce has posted a record performance for 2023 after a “step-change” 12 months.

Underlying operating profit rose from £652m in 2022 to almost £1.6bn last year, while revenues were also up from almost £12.7bn to £15.4bn.

Rolls-Royce, which employs several thousand people at its Bristol factory, posted record free cash flow of almost £1.3bn.

The company has also seen its net debt drop from £3.3bn at the of 2022 to £2bn at the close of last year.

Tufan Erginbilgic, CEO said: “Our transformation has delivered a record performance in 2023, driven by commercial optimisation, cost efficiencies and progress on our strategic initiatives. This step-change has been achieved across all our divisions, despite a volatile environment with geopolitical uncertainty, supply chain challenges and inflationary pressures.

“We are managing the business differently and our significant performance improvement in the year reflects the hard work and focused actions of all our teams. We are also continuing to invest to drive future sustainable growth. Our strong delivery in 2023 gives us confidence in our 2024 guidance and is a significant step towards our mid-term targets. We are unlocking our full potential as a high-performing, competitive, resilient, and growing Rolls-Royce.”

Rolls-Royce said 2024 will bring “continued progress” with underlying operating profit between £1.7bn and £2bn and free cash flow between £1.7bn and £1.9bn.