Rolls-Royce says Brexit vote will not lead to job losses

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Engine manufacturer Rolls-Royce said today that its day-to-day business will not immediately be impacted by last week’s referendum result.

The company issued a calming statement to the markets to say that the vote will not lead to job losses, restructuring or relocation.

In a trading statement, the FTSE 100-listed group added the medium and long-term implications of leaving the bloc would depend on whether Britain can agree a post-Brexit trade deal with its European neighbours.

Rolls-Royce said it remains committed to the UK” where we are headquartered, directly employ over 23,000 talented and committed workers and where we carry out a significant majority of our research and development”.

The group, which last month threw its weight behind the Remain campaign, also indicated trading in the first five months of the year has been largely in line with expectations and that expectations for the whole of 2016 remain unchanged.

Rolls-Royce said:

“As outlined in May, underlying profit before financing charges and tax for the first six months of the year is expected to be close to break-even, with our performance significantly weighted towards the second half,”

This reflects the previously identified headwinds expected in 2016 and the resulting lower level of overall performance compared to the prior year.

Although this is not the outcome the company would have chosen, Rolls-Royce remains committed to the UK where we are headquartered, directly employ over 23,000 talented and committed workers and where we carry out a significant majority of our research and development.

The medium and long-term effect will depend upon the relationships that are established between the UK, the EU and the rest of the world over the coming years.”

The engineering firm has emerged largely unscathed in the market turmoil since Thursday’s vote.The London-listed group added it expects to deliver more engines in the second half of the year with solid underlying growth in revenues, adding it forecast to reap the benefits of its ongoing restructuring programme.

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