Episode from the podcastAdrian Lawrence Podcast

News from the Reporting Accounts team Tuesday 26th January 2021

Released Tuesday, 26th January 2021
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In today's podcast the Reporting Accounts team is talking about Rolls Royce and its Aero Engines division which has been in the news again today.

Rolls Royce's income is based on the number of hours its aero engines are in service, so with the lockdown restrictions in the UK and USA, international aviation is very limited and therefore there is a significant impact on their earnings.

The latest Covid Mutation has meant longer lockdowns and a delay to the return of normality to global aviation.  Rolls Royce is indicating that this delay will likely cost it in the region of £2billion in additional lost income.

Not surprisingly the companies share price dipped on this announcement.  In the longer term the price will recover but that depends on pandemic being brought under control and for the moment this now seems further in the future that anticipated last year.

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