OREANDA-NEWS. Rolls-Royce Holdings plc will be presenting its Half Year Results on 28 July 2016. As a result, ahead of the start of its close period from 1 July 2016 the company is confirming that there has been no change to its outlook; overall trading in the first five months of the year has been broadly in line with expectations and the outlook for the year as a whole is unchanged.

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 breakeven, 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. Looking to the balance of the year, the second half outlook reflects increased large engine deliveries, good underlying growth in aftermarket revenues and expected incremental benefits from ongoing restructuring programmes.

As set out in February at the time of our Full Year Results, the priorities for 2016 are threefold: to strengthen our focus on engineering and operational excellence and leverage our installed base; to deliver a strong start to our transformation programme; and to start rebuilding trust and confidence in our long-term growth prospects. Good progress has been made on a number of initiatives to deliver these priorities, including the early stages of our transformation programme. As a result, we are well on track to delivering our expected cost savings in 2016 and 2017. Updates on this programme, its financial impact and our planning for Phase 2 will be provided at our Half Year Results in July.

The 2016 full year outlook also excludes the year-on-year effect of foreign exchange translation. Should rates for the full year remain at the average levels seen in the first five months of 2016 (USD:GBP 1.44; EUR:GBP 1.29) the movement would improve underlying revenues by around ?400m and improve underlying profit before tax by around ?40m.

On Thursday 23 June in a referendum the UK voted to leave the EU. Although this is not the outcome the company would have chosen, Rolls-Royce remains committed to the United Kingdom 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 UK’s decision will have no immediate impact on our day-to-day business. 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.

Over the next few days the Company will be holding a number of meetings with investors and analysts, including at the forthcoming Farnborough Airshow. All comments made at these events are expected to be consistent with the outlook reconfirmed above.