Rolls-Royce issues buoyant trading update

Rolls-Royce announced today that its first half 2023 financial results are expected to be “materially above consensus expectations” and as a result has updated its full year guidance. The aeros engine manufacturer expects significantly improved first half results with a higher underlying operating profit of £660 million-£680 million compared to the expected consensus of £328million. Free cash flow is also expected to be above the £50 million consensus to between £340 million -£360 million, which the company said reflects “continued end-market growth” and its focus on “commercial optimisation and cost efficiencies across the Group”. Rolls-Royce now expects a full year