Profit surge for Rolls-Royce

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​Rolls-Royce has announced that it posted an underlying operating profit of £307m in the first half of 2021, up from a £1,630m loss in the same period in 2020.

Total profit in the first half of this year was £147m, compared to a loss of £3,326m in the same six months last year. Revenue was £5,227m, slightly down on the £5,410m in 2020.

Rolls-Royce said as part of a restructuring programme, it is expected to achieve £1bn in savings in 2021.

Chief executive Warren East, said: "Our continued focus on the elements within our control, together with a good performance from Defence and order intake recovery in Power Systems have enabled us to deliver solid progress in the first half. The benefits of our fundamental restructuring programme in Civil Aerospace are evident in our reduced cash outflow and improved operational efficiency.

“This leaner cost base together with a strong liquidity position gives us confidence in our ability to withstand uncertainties around the pace of recovery in international travel and benefit from the eventual rebound. We are making disciplined investments in the new opportunities to drive future growth, particularly in net zero power where we are leading the way with innovation and engineering excellence.

“Our net zero pathway and targets, announced in June, set out our plan to enable the sectors in which we operate achieve net zero by 2050 by driving step-change improvements in engine efficiency, helping accelerate the take-up of sustainable fuels and developing new technologies."