Rolls-Royce Full-Year Report 2022

Tufan Erginbilgic, CEO said: “Our transformation has delivered a record performance in 2023, driven by commercial optimisation, cost efficiencies and progress on our strategic initiatives. This step-change has been achieved across all our divisions, despite a volatile environment with geopolitical uncertainty, supply chain challenges and inflationary pressures.

Highlights

• Underlying operating profit of £1.6bn and underlying margin of 10.3%, reflecting the impact of our strategic initiatives, with commercial optimisation and cost efficiency benefits across the Group
• Record free cash flow of £1.3bn driven by operating profit and continued LTSA balance growth
• Return on capital more than doubled to 11.3% reflecting improved operating profit, disciplined capital allocation and working capital management
• Statutory net cash flow from operating activities of £2.5bn, £1.0bn higher year on year
• Net debt of £2.0bn, down from £3.3bn at the end of 2022, as we strengthen the balance sheet and build resilience
• 2024 guidance: continued progress with underlying operating profit between £1.7bn and £2.0bn and free cash flow between £1.7bn and £1.9bn