Rolls Royce in 4pc profit rise

Rolls-Royce posted a four per cent rise in full-year profit, helped by solid growth at its civil aerospace and energy units and said it had paid most of the costs associated with last year's technical setbacks.

The world's second-largest maker of aeroplane engines reported an underlying pre-tax profit of £955m on revenues six per cent higher at £11.08bn for the year to the end of December 2010.

Rolls increased its final payment to shareholders by 6.7 percent to 9.60 pence per share.

Rolls suffered technical setbacks on two major programmes last year. A Qantas Airbus A380 suffered a partial engine failure in service, while on Boeing's 787 programme, engine failure during ground testing led to further delays for the entry-in-service of the new plane.

The company said the bulk of the anticipated costs associated with Qantas incident had been recognised in the 2010 results.

It added that profits in 2011 were expected to see good growth benefiting from strong trading in civil aerospace.