Rolls-Royce Sea Griffon (RAF Museum Hendon)

Image source: tataquax

14 Feb

2017

Do you do business in your region? Sign up to our daily bulletin to keep up-to-date.

Image source: tataquax

Industrials

Rolls-Royce reports one of the biggest losses in UK corporate history

Posted by on 14 Feb 2017

UK engine manufacturer Rolls-Royce has capped a turbulent 12 months by posting massive multi-billion pound losses in some of the worst results in its 111-year history.

The Derby-headquartered firm has revealed its finances dipped £4.6bn into the red last year as a combination of Brexit-induced currency woes and its whopping fine bribery fine from the UK Serious Fraud Office took their toll.

In its results, posted to the stock exchange this morning, the global engine maker revealed that the plunging value of the pound against the dollar last year had wiped £4.4bn from its financials, resulting in a 49% drop in pretax profits.

The firm’s worldwide reputation also took a hit earlier this year when it was revealed it had reached a £671m voluntary settlement with the fraud office, amid allegations it paid bribes to secure deals in countries around the world.

Its losses are potentially the biggest in its history and have the unwanted distinction of being one of the biggest losses in UK corporate history.

Despite this, Warren East, Chief Executive, struck a defiant note, hailing an ‘important year’ which heralded the ‘transformation’ of the firm in an attempt to convince shareholders that the company’s recent travails were behind it.

He said: "Despite the significant market and aerospace product transition challenges identified in 2015, we have made operational progress and performed ahead of our expectations for the year as a whole.

"At the same time we have delivered major changes to our management and processes and, while we have made good progress in our cost cutting and efficiency programmes, more needs to be done to ensure we drive sustainable margin improvements within the business."

The UK’s biggest corporate losers

Royal Bank of Scotland - £24.1bn loss in February 2009

Vodafone - £21.8bn loss in May 2006

Lloyds Banking Group - £8.5bn loss in February 2009

Cable & Wireless - £6.5bn loss in June 2003

Tesco - £6.4bn loss in April 2015

Read more in these areas:

#National #government #international #stock market
Sponsored Content
North East car dealership launches major rebrand

Sunderland based car dealership, Town Centre Automobiles has undergone a…

Develop the expertise your company needs with higher and degree apprenticeships at Teesside University

Investing in leadership and management is something that no business…

CIM launches ‘North East Marketing Greats’ with region’s top marketers

Fifty of the North East’s leading marketers are backing a…

North East LEP careers lead named Career Educator of the Year

The North East man helping to transform the quality of…

Sponsor your content →