RE: wait for 35 p!3 Nov 2022 09:16
Rolls-Royce (RR.L) also lagged behind despite announcing that it expects to meet forecasts for the full year thanks to a recovery in long-haul flying and a strong defence business.
Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: “Rolls Royce is doing all it can within its control. Costs are being managed by inflation-linked clauses in its customer contracts, debt’s being repaid, and crucial Engine Flying Hours are edging upwards. The trouble is, and which has been the case since the pandemic struck, the group’s grappling against a multitude of headwinds from external forces.
"Engine Flying Hours, which are used to calculate how often Rolls Royce’s engines are serviced, will never take off completely while restrictions remain in China. At the same time, while the debt pile is coming down, and is on a fixed interest rate, it is still suffocatingly large. The group’s carrying £4bn ($4.5bn) of drawn credit around, and that will limit growth for a while yet because lightening that load takes priority over anything more exciting."
So what makes you think this is a basket case?
Can you provide a balanced view?