Business
AGM Statement and Trading Update
AGM Statement and Trading Update.
About this update from Rolls-royce Holdings Plc
[{"type":"text","content":"\n\n 11 May 2023\n \nROLLS-ROYCE HOLDINGS PLC AGM STATEMENT AND TRADING UPDATE\n \nRolls-Royce Holdings plc is holding its Annual General Meeting today. In his address to shareholders, Chief Executive Tufan Erginbilgic will comment:\n\"We are transforming Rolls-Royce into a high quality and competitive business with a strong balance sheet and growing profit, cash flows and returns. We are already benefitting from the actions we are taking as well as recovery and growth in our end markets. We announced several changes to the executive team in March to support the transformation, adding leaders with proven track records of delivery and high-performance. We are making good progress and our financial performance year-to-date is in line with expectations. I'd like to thank everyone at Rolls-Royce for their hard work and commitment so far. I am confident that, together, we can achieve great results.\"\n \nTrading update to 30 April 2023\nOur financial performance is improving reflecting positive changes driven by our transformation programme workstreams and good end market demand for our products and services. Supply chain management remains a key operational challenge for us as original equipment and aftermarket services volumes increase, especially in Civil Aerospace. Our financial performance is in line with our expectations at the time of the full year results on 23 February. Our underlying operating profit guidance of £0.8-£1.0bn and free cash flow guidance of £0.6-£0.8bn in 2023 is unchanged. We anticipate our free cash flow generation will be seasonally weighted in the second half of the year, as previously indicated.\n \nIn Civil Aerospace, long term service agreement large engine flying hours (EFH) were 83% of 2019 levels in the four months to 30 April, and on track for the 80% to 90% range for the full year, as guided in February. Shop visit volumes and OE deliveries are also on track with expectations. We have continued to win new business including our biggest ever order of Trent XWB-97 engines in the period, with an MoU for 68 engines (plus 20 options) for Air India.\n \nIn Defence, we conti...