Unic Press UK: Rolls-Royce, a global manufacturer of integrated power systems for use at sea, in the air and on land, has published its 2016 accounts, disclosing a loss before tax of circa £4.6 billion.
The key facts for 2016 year results
- Reported revenue of £14.95 billion, which represents a 9% increase from 2015 numbers.
- A loss before tax of £4.63 billion.
- “Underlying revenue down 2% at constant exchange rates, reflecting weakness in Marine”
- “Underlying profit before tax down 49% at constant exchange rates”
- “Final payment to shareholders maintained at 7.1 pence per share in line with changes announced in February 2015 giving a full year dividend of 11.7 pence (2015 full year: 16.4 pence)”
2017 outlook
- A modest performance improvements, targeting free cash flow to be similar to 2016.
- Completion of Industria de Turbo Propulsores SA (“ITP”) acquisition to “strengthen Rolls-Royce’s position on its Civil Aerospace large engine growth programmes by capturing significant additional value from its long-term aftermarket revenues.”
On the 2016 results, the company’s chief executive Warren East, said:
“2016 has been an important year as we accelerated the transformation of Rolls-Royce. Despite the significant market and aerospace product transition challenges identified in 2015, we have made operational progress and performed ahead of our expectations for the year as a whole. At the same time we have delivered major changes to our management and processes and, while we have made good progress in our cost cutting and efficiency programmes, more needs to be done to ensure we drive sustainable margin improvements within the business.”
On 17th January 2017, Unic Press UK had reported that Rolls-Royce reached an “agreements in principle” to pay £671 million in penalties over claims that it paid bribes to secure export contracts from countries. The company has confirmed that this sum, £671 million, was recognized within the 2016 accounts.
