LONDON (dpa-AFX) - Rolls Royce Holdings plc. (RYCEF.PK, RR.L, RYCEY.PK) reported that its loss before taxation for the year ended 31 December 2019 narrowed to 891 million pounds from 2.95 billion pounds in the prior year.
Loss attributable to ordinary shareholders also narrowed to 1.32 billion pounds or 69.07 pence per share from 2.40 billion pound or 129.15 pence per share in the prior year.
Group underlying operating profit improved by 25% to 808 million pounds as a result of improved gross profit, lower C&A costs and higher profit from joint ventures offsetting an increased R&D charge.
Revenue for the year was 16.59 billion pounds, up from 15.73 billion pounds in the prior year, primarily driven by growth in Civil Aerospace, offsetting a 76% decline in non-core revenue.
For 2020, the company expects stable to low-single-digit sales growth in Civil Aerospace and operating margins 50-100bps higher year-over-year, despite 100 million pounds -150 million pounds reduction in the level of R&D capitalisation.
The outbreak of COVID-19 represents a macro risk and is likely to have an impact on air traffic growth in the near term; however long term growth trends remain intact.
Core operating profit growth is expected to be around 15%, with at least 1 billion pounds of free cash flow in 2020, as we drive towards its ambition to exceed 1 pound per share of free cash flow - or at least 1.9 billion pounds - in the mid-term.
Warren East, Chief Executive said, 'We made further progress on the Trent 1000; cash costs are in line with guidance. We remain on target to reduce aircraft on ground to single digits by the end of Q2 2020.'
Rolls-Royce also said it has appointed Dame Angela Strank as a Non-Executive Director. She will join the Board with effect from 1 May 2020 and will become a member of the Nominations & Governance Committee, the Safety, Ethics & Sustainability Committee and the Science & Technology Committee.
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