Rolls backlog in spotlight

ROLLS-ROYCE’S results this week will be watched closely by investors keen to know if the aerospace giant is on track to generate enough cash to meet its £71billion backlog of orders.

The company aims to deliver more than £1billion in free cash flow by 2020 to help fund a massive expansion in its output.

The firm is in the throes of doubling engine production from 300 to 600 a year, the biggest increase since the Second World War, in a transformation programme led by chief executive Warren East. He has led the company for two years after it issued a series of profit warnings.

When Rolls unveils results on Tuesday, it is expected to report underlying profit up at £193 million against £104 million last year, but free cash flow is likely to be slightly worse.