Tony Stewat
08 Feb 2017
for those without FT subs. Citigroup, repeating its “buy” advice, said Rolls has an opportunity to move “from firefighting to looking to the future.” Rolls’ settlement last month with the Serious Fraud Office means the jet engine maker “can start moving the dialogue to the longer term with more credibility,” said Citi.Guiding for free cash flow break-even or better this year would begin to rebuild confidence and help investors focus on 2019 and beyond, said Citi, adding: “As the company moves the narrative to the future, we would expect the shares to re-rate.”
Tony Stewat
08 Feb 2017
next week's a big week! [link]
Akis1999
23 Jan 2017
Funny accounts Sorry if this has been discussed before, I was looking at the last 5 years accounts at Hargreaves and noticed a couple of things, one is the Net Interest decimating the profit in '14 and '15 - are these bonds they have issued or what exactly is it?
nk1999
19 Jan 2017
Jefferies From Citywire:"Jefferies upbeat on Rolls-Royce after bribery settlement Aerospace engineer Rolls-Royce (RR) has agreed to pay £671 million to settle bribery investigations that have dogged the company for four years and, despite the size of the settlement, Jefferies is still upbeat about future forecasts.Analyst Sandy Morris maintained his ‘buy’ recommendation and target price of 900p on the stock following news of the deferred prosecution agreement (DPA) with the UK’s Serious Fraud Office and authorities in the US and Brazil.‘While slightly aghast at the scale of the DPA, we find ourselves with no pressing need to rush to change forecasts for underlying earnings before interest and taxation and, far more importantly, free cashflow, even taking the DPA into account,’ he said.‘Indeed, if transaction FX [currency] emerges as we think possible, there may be upside to our forecasts for free cashflow looking three or four years ahead. We do not know what weighs most heavily with credit rating agencies, but we can see no compelling reason for an automatic downgrade.’The shares jumped 5.6% to close 37p higher at 702p on Tuesday."
Tony Stewat
17 Jan 2017
Re: Profit & cash ahead of expectations. Other people's, i.e. 'overpaid city analyst' expectations
LK Hyman
17 Jan 2017
Re: Profit & cash ahead of expectations. Exile,"cash expected to be ahead of expectations."How does that work then, m8? Expected to be ahead of PREVIOUS expectations, surely?LKH on the flybridge sloppy wording from RR, tut tut
TrenthamExile
17 Jan 2017
Profit & cash ahead of expectations. Within the RNS, as well as all the info on legal settlements, there was another key paragraph which bodes well:"Rolls-Royce will report full year 2016 results on 14 February 2017 and an appropriate update on the implications of these agreements will be provided at that time. Early indications are that the Group has had a good finish to the year with both profit and, in particular, cash expected to be ahead of expectations."
ajacko
17 Jan 2017
Re: Buying off the SFO? So you pay a bribe to the SFO to get off for being caught paying bribes, classic!
Hydrogen Economy
17 Jan 2017
Buying off the SFO? As so often it seems when wrongdoing in a Company is discovered and punished, it is the shareholders who carry the burden of punishment.Maybe some shareholders unwittingly benefited from additional profits, all will pay the fines. No mention however of the people conducting, sanctioning or turning blind eyes to these criminal bribes. Is it acceptable for management in such circumstances to agree to hand over shareholder funds and in return avoid prosecution? It rather looks that way, which in a way mirrors the original offences.
Hydrogen Economy
17 Jan 2017
Re: News today NK"I don't know whether the settlement is less or more than the amount Mr. market was expecting"Telegraph report two different views on that question (below), but implies overall the settlement should be either positive or at worst mildly negative.The fine represents 36p per share to be paid over 5 years so around 7p a year. Not all of that cost will drop through to the bottom line, but it is material relative to the forecast EPS 2016-2019 of 18.8p 27.7p 36.6p.23, 33.3, 35.6 adjusted - the fine will presumably be treated as exceptional.Some (hopefully all) this is factored into the price. The removal of this uncertainty should be a positive. The value in RR is the medium/long term potential of an industry which be driven hugely by the growing middle class in developing countries wanting to fly. Hopefully Warren East and the team will new focus on developing and building more world beating engines and taking a good slice of that market without recourse to any more monkey business.H2[link] one City analyst forecast Rolls shares could rise in response to the announcement, saying the SFO had been “generous” in both the size of the penalty and the timeframe Rolls has to pay it in.“Investors don’t seem to have been bothered by Rolls having this hanging over it,” the analyst said, speaking on the condition of anonymity. “The shares have been trading at a premium for a while. But it’s put even more pressure on Rolls’s cashflow which is already awful - we’ll have to see if the company can cover its dividend come results.”But then-"Sandy Morris, aerospace analyst at Jefferies, said that Rolls is unlikely to see its debt rating cut by ratings agencies as a result of the settlement, though the scale of it was "higher than I hoped", he said."
Peermade
16 Jan 2017
Re: Is That All If we think the competitors are all goody two shoes when it comes to the same contracts we must be mad.No one apart from the corrupt likes corruption but if we insist on asking our best athlete to run pulling a car tyre, then the least we can do is make sure the French, Germans and Americans do the same. We should collect the evidence that they are also gaming the field and ask SIS to assist with this. Welcome to Brexit land where Britain PLC needs to fire on all cylinders with no room for lefty liberals. Oh dear thats half the BBC finished in one go.
Hyperproject
16 Jan 2017
Is That All In motoring terms, I was expecting my expensive car to be crushed, instead I get a £25 fine and no penalty points. Now that this nonsense is out of the way, we can see swift progress to £10+ per share and happy days.
nk1999
16 Jan 2017
News today after the close today:"ROLLS-ROYCE ANNOUNCES AGREEMENTS IN PRINCIPLEWITH INVESTIGATING AUTHORITIES Rolls-Royce announces that it has in principle reached a Deferred Prosecution Agreement (DPA) with the UK Serious Fraud Office (SFO), which was the subject of a preliminary court ruling today. The proposed DPA is subject to final judicial approval and the SFO and Rolls-Royce will appear at court on 17 January 2017 to seek this approval. In addition to the agreement with the SFO, Rolls-Royce has also reached a DPA with the US Department of Justice (DoJ) and a Leniency Agreement with Brazil's Ministério Público Federal (MPF). Rolls-Royce has co-operated fully with the authorities and will continue to do so. These agreements relate to bribery and corruption involving intermediaries in a number of overseas markets, concerns about which the company passed to the SFO from 2012 onwards. These are voluntary agreements which result in the suspension of a prosecution provided that the company fulfils certain requirements, including the payment of a financial penalty. In total, these agreements, if finalised, would result in the payment of approximately £671m*. Under the terms of the agreements with the DoJ and MPF, Rolls-Royce has agreed to make payments to the DoJ totalling $169,917,710 and to the MPF totalling $25,579,179. Under the terms of the DPA with the SFO, Rolls-Royce will pay £497,252,645 plus interest under a schedule lasting up to five years, plus a payment in respect of the SFO's costs. As a result, total payments by Rolls-Royce in the first year of all three agreements would be £293m*. Rolls-Royce will report full year 2016 results on 14 February 2017 and an appropriate update on the implications of these agreements will be provided at that time. Early indications are that the Group has had a good finish to the year with both profit and, in particular, cash expected to be ahead of expectations."I don't know whether the settlement is less or more than the amount Mr. market was expecting - Does anyone know? Closing statement sounds positive anyway.nk
gamesinvestor
01 Jan 2017
Lecky [link] - this looks like one of those disruption points in history where the incumbent doesn't win out quite so easily.Will they be beaten to it, and how long will it all realistically take?Games
JoseFrio
21 Dec 2016
Re: $408m Contract Yup, it's a new contract for $408m[link] incorrect headline figure of $404m)
