Rolls-Royce reported an 80 per cent drop in first half profit, but stuck to guidance that its profit performance will recover in the second half of the year.
Rolls-Royce, which is in turnaround mode after warning last year that 2016 profit would halve, reported an underlying pretax profit of £104m for the first six months of the year, beating a consensus forecast for it to be £16m in the red.
The company said its outlook for the full year is unchanged, driven by a pick-up in large aero-engine deliveries, growth in demand for engine servicing and as it benefits from a cost cutting program. Analysts expect profit it to post pretax profit of £669m in 2016.
Chief executive Warren East said: "Order intake has been good and, although known headwinds constrained revenue and profit in the first half, the business remains well positioned to deliver a solid second half performance."
Following the EU referendum, Rolls-Royce reaffirmed its commitment to the UK but warned that longer term assurances will depend on the post-Brexit deal.
Rolls-Royce is involved with The Advanced Manufacturing Research Centre (AMRC) in South Yorkshire, which is managed by the University of Sheffield.