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Rolls-Royce reports one of the biggest losses in UK corporate history
Posted by Billy Wood 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