Rolls-Royce reassures UK commitment

Rolls- Royce Holdings PLC (LON:RR) today released a statement confirming it’s continued commitment to the UK following Thursday’s vote to leave the EU.

The engineering giant said:

“Although this is not the outcome the company would have chosen, Rolls-Royce remains committed to the United Kingdom where we are headquartered, directly employ over 23,000 talented and committed workers and where we carry out a significant majority of our research and development”

The FTSE 100 firm also made clear that the UK’s decision to leave the EU will have ‘no immediate impact on day-to-day business’ but has warned that the medium to long term effect of the vote will be dictated by the negotiations and trade deals established between the UK and the EU in the next stages.

In its statement the company also said that overall trading in the first five months of the year has been ‘broadly’ in line with expectations set out in its annual results earlier this year.

The British company’s cost-cutting scheme is ‘on track’ as the company seeks profitable growth as its share price halved leading to changes in senior management. The scheme is expected to produce a stronger performance to the second half of the year.

The Company said:

“As outlined in May, underlying profit before financing charges and tax for the first six months of the year is expected to be close to breakeven, with our performance significantly weighted towards the second half”

28/06/16

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