Rolling on Rolls Royce
25 January 2010
For years now Rolls Royce has been delivering superb results – increases in revenue, profits (£1,172 million in 2009), dividends (now 15p a share). I believe they will carry on performing well and are worth £5.90 each ordinary share.
Their civil aerospace order book stands at £47 billion. Also their other business' have order books of £3.5 billion for marine; £6.5 billion for defence and £1.3 billion for energy. In 1999 the whole order book was £13.2 billion.
Also the company has been well run for years by Sir John Rose, for example it's cash balances have increased to £635 million. Research and development isn't compromised either, and for years their after-sales have performed well.
All in all the company has hardly put a foot wrong.
Remember as 2008 has shown, shares and other financial assets can go up and down at frightening speed. Don't buy any, unless you know what you are doing and can afford to lose the money.
Marabese