SHARE OF THE WEEK: Rolls-Royce reveals half-year results

All eyes will be on jet engine maker, Rolls-Royce, when it releases its half-year results.

In an unscheduled update this week, the FTSE 100 engineer said it expects full-year profits of between £1.2bn and £1.4bn, up from its previous forecast of £800m to £1.4bn. 1 billion.

That sent Rolls-Royce Shares they’re soaring to their highest level since March 2020, and they’ve almost doubled this year – a big boost for boss Tufan Erginbilgic, who took over in January.

Investors are eagerly awaiting Thursday’s interim results. Rolls-Royce expects a profit of between £660 and £680 million for the first half of the year, well above the £328 million average analysts predict.

Erginbilgic, a former BP executive who described Rolls as a “burning platform” following the acquisition, has been running a transformation program.

“Better profit and cash generation reflects greater productivity, efficiency and improved commercial results,” he says.

“Despite a challenging external environment, particularly supply chain constraints, we are beginning to see the early impact of transformation across all divisions.”

Warren East, his predecessor, tried to boost profitability in 2018 with a plan. The pandemic forced further restructuring to avoid a collapse in earnings as travel ended, undermining investor confidence.

But Rolls has benefited from a return to the air since the lockdowns ended. Investors are hoping for a clear growth plan to cash in on defense demand and the recovery of the travel industry.