Rolls Royce say they were ready for the downturn

Rolls Royce has been able to battle through the downturn that has been experienced in both the motoring and engineering markets and has actually increased its 2008 dividend by 10 per cent, as well as being optimistic in doubling revenues over the next 10 years.

Although the group acknowledged that some customers had been affected by the downturn, it said the business itself is diverse enough to continue to grow in the current economic climate.

In 2008, the underlying pre-tax profits were £880 million which is a 10 percent increase. Engineering orders were also up 21 percent as now more than half of the business is made up of after-market services such as repairs and engineering services.

The company will benefit from the fall in the value of the sterling as its £1.9 billion loss was due to the impact of exchange rates.

The main concern is that credit shortages could cause problems for suppliers. However, chief executive ,Sir John Rose, announced that the company may help good suppliers and are prepared to sanction short term loans.

The company has £1.4 billion net in cash which is a positive stance compared to the huge debts that they suffered in the previous recession.

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