Hope for Rolls as revamp kicks in

eMBATTLeD engineer Rolls- Royce is expected to post a boost in half-year profits in results that will be closely watched by investors judging its boss’s turnaround plans.

Chief executive Warren east has been slashing costs and ramping up engine production since taking over two years ago after the firm issued five profit warnings in the 20 months to November 2015. During 2016 profits fell in every division and it was also handed a £671m fine for corruption.

Analysts predict that half-year profits in its vital civil aerospace division will have more than trebled to £102m compared to the same period last year, and profits to climb 85pc to £193m. But the group’s free cash flow – a key sign of its strength – is expected to be worse when it reports tomorrow, in a potential blow to Rolls-Royce’s efforts to deliver on its £71bn order backlog.

Investors are likely to be particularly interested in the results from the civil aerospace division, whose engine clients include Airbus, Boeing and emirates.