Revenue and profits have increased markedly at engineering giant Rolls-Royce as the company continues with its transformation programme into 2023.
The firm, whose submarine reactor factory is in Derby, posted full-year underlying turnover of £12.6 billion for the 12 months to December 31, 2022, up from £10.9 billion in 2021.
Underlying operating profit also climbed year on year, from £414 million to £652 million, while underlying pre-tax profit rose from £36 million to £206 million.
Rolls-Royce, not to be confused with the separate car company of the same name, designs and makes engines for civil and defence aerospace and power and propulsion systems for use in sectors such as marine and energy.
In a statement to the London Stock Exchange today, it said it had won "strong new orders" in civil aerospace and defence and a record order book in power systems during its last financial year.
It had net debt of £3.3 billion, down from £5.2 billion at end 2021, due to disposals and improved cash flow, it told the market.
The company said its transformation programme was under way to "create a high-performing, growing and competitive business" and deliver a step-change in its performance.
The programme is centred around seven workstreams, namely efficiency and simplification, commercial optimisation, working capital, business improvement, strategic review, performance management and purpose and culture.
Chief executive Tufan Erginbilgic, who joined the group at the turn of this year, said: "It is an honour to lead Rolls-Royce, one of the world's most trusted brands and a business with strong positions in growing markets. Our people take tremendous pride in our innovation and engineering solutions.
"Together, we must now move at pace and harness that pride to create a high-performing, growing and competitive business. While our performance improved in 2022, we are capable of much more.
"Our transformation programme will improve our efficiency and commercial outcomes and deliver a sustainable reduction in working capital.
"This will require a winning culture, underpinned by more effective performance management and a shared determination to deliver cash and reduce debt.
"Our success will enable us to reward investors for their support and invest in future growth. Our transformation programme is already under way and is moving at pace.
"It will include a strategic review so that we can prioritise our investment towards the most profitable opportunities. We will report the findings together with our medium-term goals in the second half of this year."
