Rolls Royce Announce No Brexit Impact

Rolls Royce Announce No Brexit Impact

Rolls Royce has revealed that its day to day activity will not face an immediate impact of Britain’s decision to pull out of the European Union.

The FTSE 100 listed group revealed in a trading statement that the medium and long term impacts of leaving the bloc will depend on the details of Britain’s post-Brexit trade deal with its neighbours in Europe.

The famous vehicle manufacturer commented that it remains fully committed to the UK where its headquarters are based and they directly employ over 23,000 committed and talented workers who carry out a sizeable amount of the firm’s development and research.

Last month the car manufacturing group announced that it was fully behind the remain campaign, while indicating that its trading in the first five months of the year had fallen primarily in line with its expectations and that the company’s expectations for the rest of the year are set to stay the same.

The London listed group commented that, as it outlined in May, the underlying profit before tax and finance changed for the first six months of 2016 is anticipated to be close to break even, with a significant improvement in performance expected towards the second half of the year.

The manufacturer also said that it anticipates a delivery of more engines in the second half of 2016 with solid underlying revenue growth, adding that it expects to reap the benefits of its continuing restructuring scheme.

However, Rolls Royce added that its forecast outlook for the year does not include the year on year effects of foreign exchange translation.

If rates for the whole of 2016 stay at the average levels witnessed in the first five months of the year, with the pound worth 1.29 euros and $1.44, then the movement would see underlying revenues improve by approximately £400 million.

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