Investors are warming to aircraft engine manufacturer Rolls-Royce (RR.) as it confirms guidance for 2016 and says it sees no immediate impact from the UK’s vote to exit the European Union. The shares are up 2.2% to 666p
Underlying profit before financing costs and tax is expected to be around break-even point in the first half and the company is reliant on a pick up in the second six months of the year underpinned by increased deliveries of large engines. Analysts expect Rolls-Royce's 2016 pre-tax profit to fall to £633 million from £1.36 billion in 2015.
The £12.3 billion cap’s status as a serial warner in recent years makes the in-line statement even more significant.
The company says it remains committed to its UK headquarters and significant domestic R&D footprint despite the vote although it does warn any long-term impact from the vote depends on the relationships struck between Britain, the EU and other potential trading partners.
Interims are out on 28 July when Rolls will update on the progress of its cost-cutting programme.