Shareholders of Rolls-Royce to receive £1.5 billion dividends
Rolls-Royce is set to pay £1.5 billion to its shareholders, and is expected to announce that dividends will return following a rise in profits. The Derby-based company, responsible for manufacturing jet airplane engines and propulsion systems for sea vessels, saw an operating profit of £2.5 billion in 2024. Operating profit had climbed by 55% on the year ahead of sales rising by £2.4 billion.
The company gifted 150 shares to every one of its workers. Worth around £700, it is expected to pay a dividend of 6p per share following its results.
The latest figures mark a turnaround in its fortunes. Rolls-Royce was forced to announce 9,000 job cuts, raising billions in an emergency funding following a fall in air travel during the pandemic.
Former BP executive Tufan Erginbilgic was appointed as CEO early in 2023. Erginbilgic had initially described the company as a “burning platform,” calling its current performance “unsustainable.”
The company saw a period of revival over the next 18 months, announcing a gift of 150 shares to its 42,000 employees globally in August 2024. This came after it saw a rise of £1.1 billion in profits in the first half of 2024.
“Strong 2024 results build on our progress last year, as we transform Rolls-Royce into a high-performing, competitive, resilient, and growing business,” Erginbilgic said . “All core divisions delivered significantly improved performance, despite a supply chain environment that remains challenging. We are moving with pace and intensity. Significantly improved performance and a stronger balance sheet gives us confidence to reinstate shareholder dividends and announce a £1bn share buyback in 2025.”
The dividend of 6p per share will need to be approved by shareholders at the annual general meeting on 1st May. They should be completed by 16th June. The payout will be worth £500 million in total. It will be combined with the £1 billion share buyback scheme.
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