Rolls-Royce has cemented its status as a darling of the London Stock Exchange after its value passed £40bn for the first time ever.
The Derby-headquartered aerospace giant has seen its share price soar like almost no other London-listed company since its low point during the Covid-19 pandemic.
Spearheaded by its relatively new CEO, Tufan Erginbilgiç, Rolls-Royce’s shares passed the valuation milestone after rising to more than 485p each.
Erginbilgic took up his role with the business at the start of 2023 when the share price was 93p and has overseen its remarkable rise.
In May, Rolls-Royce reaffirmed its full-year guidance for profit and cash flow as booming travel demand saw flying hours for its engines return to pre-pandemic levels.
In a trading update, Rolls-Royce said large engine flying hours had hit 100 per cent of 2019 levels in the four months to 30 April, driven by recovery in international travel to Asia and its growing fleet.
Large engine flying hours are forecast to hit 100 to 110 per cent of 2019 levels this financial year, Rolls added, alongside a target of 500 to 550 OE (original equipment) deliveries.
At the time, Deutsche Bank analysts said they believed the “evolution of large engine flying hours will be key” to assessing the company’s performance as the turnaround under its chief executive, Tufan Erginbilgic, continues.
The company’s half-year results are expected to be revealed on August 1.
By Jon Robinson via CityAM
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