Rolls Royce raises dividend after profit surge

ROLLS Royce have posted a 4 per cent rise in full-year profit with its defence contracts helping to boost the figures.

The company reported an underlying pre-tax profit of £915m on sales that were 14 per cent higher at £10.4bn for the year to the end of December 2009.

Revenues climbed 14.7 percent to £10.4bn and its order book hit a record £58.3bn. The company also raised the shareholder dividend.

The world’s second-largest maker of aircraft engines increased the final dividend payment by 5 per cent to 9p a share but said it expected the short-term trading environment to remain difficult in civil aerospace.

Chief executive John Rose said: “Rolls-Royce has delivered a solid set of results despite difficult trading conditions. This demonstrates the resilience of our business.

“Our record order book, the breadth of the portfolio across all four sectors, our strong balance sheet and the early action we have taken to reduce costs will enable us to manage short-term difficulties and deliver long-term growth.”