AGM and Interim management statement
Wednesday, 28 April 2010
Rolls-Royce Group plc is today hosting its 2010 Annual General Meeting at the Queen Elizabeth II Centre in London.
Sir John Rose, Chief Executive, will make a presentation to shareholders reflecting the content of the following Interim Management Statement:
“Whilst we are seeing signs of stabilisation and modest improvement in some parts of the global economy, to which our businesses are exposed, the overall environment remains challenging. Additional pressure has been placed on some of our customers by the recent disruption to the European aviation industry as a result of volcanic eruptions in Iceland.
“Trading performance in the year to date has been consistent with our expectations and our current view of the full year performance remains in line with that at the time of our preliminary results in February 2010. The Group’s balance sheet is robust and its financial position and credit rating remain strong. Average net cash balances in the first quarter of 2010 were similar to those in 2009.
“As a result, we continue to expect underlying revenue, underlying profits and average net cash balances to be broadly similar to those achieved in 2009 despite a modest cash outflow in 2010”.
The Group will report its interim results for the six month period ending 30 June 2010 on 29 July 2010.
A consistent strategy
“I am pleased with the progress that Rolls-Royce has made over the last few years. The disciplined application of our mission critical power systems strategy over more than two decades has made our business more broadly based, better balanced and as a consequence more resilient.
“We have maintained our focus and continued to invest in technology, product and infrastructure, making further strong progress in 2009 in all of these areas. It is pleasing that we have recently completed the acquisition of ODIM ASA, for an outlay of £150m, expanding the capabilities of our Marine business and further reinforcing our strong position in the offshore oil and gas sector.
“We have continued to extend our international footprint by investing in operational capabilities and extending our supply chain. New facilities in the USA, Singapore, Germany and the UK will progressively come into operation over the next few years, adding capacity to support volume growth, as well as supporting our key initiatives on cost reduction and productivity improvements.
“Today the portfolio is better balanced in terms of geographical spread, the range of our businesses and the proportion of revenue generated by services. The combination of the high technological content of our products and services, our ability to integrate technologies into complex power systems and our understanding of our customers’ requirements has created significant barriers to entry and new opportunities for long-term growth.
“The strong market positions we have built are reflected in our record order book, the significant number of new programmes that will come to market over the next few years and the Group’s growing installed base of products. These underpin our long-term growth and give us confidence that our revenues can double over the next decade”.