RR23 Sep 2020 16:10
I have never posted on one of these boards, just a short note about the RR speculation.
I work at RR and have invested in SYME in early august. After getting my head around the business model I thought this could be what RR could do with right now so I emailed AZ to give him my thoughts on the 16th august. It was purely just an idea I was putting out there to AZ as I am not in a position within RR to get involved with anything like this, I work on the shop floor building the engines but he did reply promptly and thanked me.
I have no idea whether AZ is in talks with RR or not, all I will say is there is a hell of a lot of inventory lying around at our place at the moment that has not yet been payed for but the orders are still firm and the airlines still want the engines. It's quite complicated how the engines are valued as they are usually sold at a loss and RR make their money back as part of a total package lease deal which includes servicing and repairing the engines, they basically get paid when planes are in the air flying, hence the current cashflow problem. I've worked at RR for around 16 years now and it's always been said that the engines are sold for around £10million each. So there are currently around 50 engines parked up (inventory) and we are still building 2 to 3 engines per week. Like I said, all these engines are still in the program and the airlines still want them, it's just that everything has been delayed because of the pandemic. So basically you are looking at around £500million inventory just in completed engines in my department, I would not like to guess at RR total amount of £££ tied up in inventory when you look at RR as a whole, I am only talking about my own department cival aviation, there is also the defence sector, nuclear sector and power systems.
So to conclude, I have no idea if AZ is in talks with RR, but if this is true its exciting news for both companies.