British Queen celebrates


Rolls-Royce unveiled its medium-term growth objectives this morning in anticipation of its capital markets event later in the day. The company's shares soared by six percent, leading the FTSE

100, following the announcement of its ambitious targets.

Under the leadership of its new CEO, Tufan Erginbilgic, the British company aims to establish "a high-performing, competitive, resilient, and expanding business."

The group is eyeing an operating profit ranging between £2.5bn to £2.8bn in the medium term, with an operating margin set between 13 percent and 15 percent, and a return on capital reaching as high as 18 percent. Additionally, Erginbilgic and the team aspire to generate free cash flow ranging from £2.8bn to £3.1bn over the same period.

As a part of this strategy, Rolls-Royce is targeting disposals amounting to £1bn to £1.5bn within the next five years.

Simultaneously with the capital markets day update, Rolls-Royce confirmed that its current trading aligns with management's full-year targets. The company reported that engine flying hours for large civil engines under long-term service agreements stood at 86 percent of 2019 levels for the ten months until the end of October, in accordance with the company's initial projections.

Erginbilgic emphasized, "Rolls-Royce is at a pivotal moment in its history. After a robust initiation of our transformation program, today, we're outlining a clear vision for the path we need to embark on and the areas we need to emphasize."

He added, "We're forging a Rolls-Royce that is high-performing, competitive, resilient, and poised for growth, granting us the financial strength to steer and shape our own future." Photo by  Chris J Dixon, Wikimedia commons.