By Moses Ebosele –
Despite one per cent revenue drop in the first half of 2016, Rolls-Royce is to attain £100m annualised savings before the end of 2016 financial year
The company explained on Wednesday that as set out in February, 2016, interim payment to shareholders reduced to 4.60 pence per share (2015 interim: 9.27 pence)
Meanwhile, £50m benefit is expected in 2016 while trading outlook for 2016 remain unchanged.
Commenting on the results, Chief Executive, Warren East, said: “In the first half of 2016 Rolls-Royce performed broadly in line with expectations, delivering a result a little better than breakeven; and the outlook for the rest of the year remains unchanged. Order intake has been good and, although known headwinds constrained revenue and profit in the first half, the business remains well positioned to deliver a solid second half performance supported by growth in engine deliveries, stronger aftermarket revenues and incremental benefits from our ongoing restructuring programmes.”
He added: “We have taken some positive first steps on the journey that will lead Rolls-Royce to profitable and highly cash generative growth. Our strategic advantages lie in our focus on engineering excellence, operational excellence and capturing value in the aftermarket.
“In the first six months, we have made progress with our business transformation; introducing the greater pace and simplicity required to make Rolls-Royce a more resilient company.”
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