The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Https://www.rolls-royce.com/investors/investor-centre/analyst-consensus.aspx
In November 2023, Rolls-Royce CEO Tufan Erginbilgiç announced that the group would sell its electrical business unit as part of a wider divesture strategy that he said could raise as much as $1.9 billion over the next five years. The company has made no public comment on whether it has received any offers for the division, which is committed to customers including Vertical Aerospace, for which it is developing the electrical propulsion system for the four-passenger VX4 eVTOL aircraft
We believe the company-targeted cash inflows from LTSA are ambitious, but expect that at least some related cash-flow benefit will be gained from increased flight hours, growing fleet (both commercial aerospace and business aviation) and improved efficiencies. Our FCF assumptions include capex of around 5% of revenue and a modest shareholder return policy being reinstated in the near term
Solid Demand: Our expectations for Rolls-Royce's recovery are supported by a strong order backlog across all segments. In civil aerospace, the large engine order book reached 1,632 engines at end-2023 (over three years of deliveries at 2024 production rates), up from 1,282 at end-2022. In defence, the order backlog at end-2023 was GBP9.2 billion (around 2.5x expected 2024 revenue), up from GBP8.5 billion at end-2022, with a book to bill of 1.3x
Fitch Ratings - London - 28 Mar 2024: Fitch Ratings has upgraded Rolls-Royce plc's Long-Term Issuer Default Rating (IDR) and senior unsecured rating to 'BBB-' from 'BB+'. The Outlook on the IDR is Positive.
The upgrade reflects Fitch's confidence that Rolls-Royce will sustain solid and gradually improving financial metrics, which are already reflective of an investment-grade profile, supported by its strong business profile. Furthermore, Fitch believes that the company has structurally improved its financial flexibility and resilience, making it less vulnerable to external shocks and cost overruns or delays on large programmes.
The Positive Outlook reflects our view that the continued sustained strengthening of margins and free cash flow (FCF) in the near term, the latter of which hinges to some degree on strong working capital inflows and a prudent shareholder distribution policy, along with debt reduction will likely result in an upgrade.