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(Alliance News) - Rolls-Royce Holdings PLC on Thursday said it would raise its annual guidance after it posted higher interim revenue and said it swung to a profit.
In the six months to June 30, the London-based maker of power and propulsion systems swung to a pretax profit of GBP1.42 billion from a loss of GBP1.75 billion a year prior, as financing costs were cut to GBP313 million.
Revenue rose by 34% to GBP7.52 billion from GBP5.60 billion the year before, driven by higher large engine deliveries, contractual improvements and increased large engine shop visits, Rolls Royce said.
The company did not declare an interim dividend.
Looking ahead, Rolls Royce raised its full-year guidance for underlying operating profit to between GBP1.2 billion and GBP1.4 billion, up from GBP652 million in 2022. It had previously guided for GBP800 million to GBP1.0 billion.
Chief Executive Officer Tufan Erginbilgic said: "Our multi-year transformation programme has started well with progress already evident in our strong initial results and increased full year guidance for 2023. There is much more to do to deliver better performance and to transform Rolls-Royce into a high performing, competitive, resilient, and growing business.
"We have a strong portfolio of products and technologies in growing end markets and have secured key contract wins that will create future value and profitable growth. Our continued transformation will grow our business and allow us to play a stronger role in the energy transition."
Shares in Rolls-Royce were down 2.6% at 179.10 pence each in London on Thursday morning.
By Sabrina Penty, Alliance News reporter
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