Rr. Event today24 May 2022 20:19
Someone on here kindly posted a link to a Rolls Royce presentation/exhibition, one day event at Institute of Engineers, in Westminster today. I attended and found it very informative, so thank you to that person.
As someone technically minded and commercially experienced, I was impressed with the extent of the IP at Rr. and if the thirty plus senior staff there today are anything to go by, the future is very bright for rr. Diverse, bright, capable and excellent communicators.
This event was mainly aimed at Government departments/minsters to explain the breath of industries rr. operate in, their leading edge R&D and their products, some of which are currently world leading. So they weren’t expecting a PI with a thousand questions!
Takeaways
1. the engineering brilliant of rr. across multiple areas was evident but I worry about their ability to convert this into profits for shareholders. As an example, SMR - while they are a ‘first mover’ in Europe and their concept/approach appears sound, they may be at a disadvantage to their American competitors who are offering cheap financial packages (funded by US Gov) as part of their sales process. (perhaps to negate the Chinese proposals to strategically located countries?)
2. they have a number of R&D projects at critical stages that will stop soon if new funding is not forthcoming.
3. While the discussions with the six different divisions/sections were excellent, I was most impressed with Defence and a guy called Richard (there was a very bright girl presenting with him who’s name I can’t remember, but to my shame, she couldn’t get a word in). Richard’s knowledge of his area, Defence was comprehensive but also his understanding of the others divisions. He was commercially attuned to the opportunities in defence and understood the importance of how they relied on other devisions. For me the Defence devision is rr. ‘jewel in the crown’ where there are enormous opportunities and profits! While the erroneous rumours of a BAe takeover were a distraction for investors, if it were a possibility, it should be Rr. buying them!
4. If Britain is to flourish on a world stage independent of the EU, it have got to urgently get behind and back companies like RR. There is a once in a lifetime opportunity here to do something really special with the team and IP Rolls has. If this was an American company or had a Elon Musk type character leading it, the sky would be the limit.
5. In conclusion, while the sp may go down in the short term due to market nervousness, rr. high debt or problems with the IPT sale, I plan to substantially increase my investment over the next few months, to hold for the long term. All this IMO and please dyor
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