Rolls-Royce still working on Brexit contingency plans
Aerospace company confirms full year guidance
Rolls-Royce Holdings
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16:15 19/04/24
Rolls-Royce on Wednesday said it was still implementing Brexit contingency plans after the UK government pulled a vote on the withdrawal agreement.
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The aerospace company also confirmed its 2018 full year forecasts with both group and core profit and cash flow to be in the upper half of its full year guidance range.
Rolls-Royce said contingency planning would continue “until we are certain that a deal and transition period has been agreed”.
“Specifically, we are working with (the) European Aviation Safety Agency to transfer design approval for large aero engines to Germany, where we already carry out this process for business jets. This is a precautionary and reversible technical action which we do not anticipate will lead to the transfer of any jobs,” Rolls-Royce said in a statement.
“We have begun to build inventory as a contingency measure, in line with the timetable that we gave in the summer.”
The company said it had been liaising with suppliers and had reviewed logistics options and had “the required capacity available”.
Operating profit was expected to come in at the top of a £300m - £500m range, while core operating profit would be at the upper half of a £350m - £550m range.
Free cash flow would be at the top of a £350m - £550m range, Rolls said.