Rolls-Royce's order book at all-time high

ROLLS-Royce yesterday toasted its biggest ever order book after securing almost £9 billion of fresh deals in the first half of its financial year.

The engine manufacturer said its order book stood at an all-time high of 61.4bn at the end of June after a string of deals with Singapore Airlines, Norwegian Airlines and Emirates Airlines.

The Derby-based group, which had a change of chief executive in April when John Rishton took over from Sir John Rose, announced a 28 per cent leap in interim underlying pre-tax profit to 595 million from 465m. Revenues grew 4 per cent to 5.46bn despite declining equipment and marine sales.

Rolls expects to double revenues over the next decade through organic growth although it is also likely to receive a significant boost from its joint-takeover of German engine maker, Tognum, with Daimler. The two companies made a 3bn swoop on Tognum earlier this year as part of a 50:50 joint venture.

Rishton said: "Completion of the acquisition, with Daimler, of Tognum will give us further opportunities for profitable growth and add significantly to the breadth and balance of our portfolio.

"For the full year, we continue to expect good growth in underlying profit and, excluding the effect of the Tognum investment, a modest cash inflow".

The company proposed an 8 per cent increase in its half-year dividend to 6.9p.