Aero-engine maker Rolls-Royce Holdings plunged to a £2.9bn full-year pre-tax loss in 2018 on revenues up from £14.7bn to £15.7bn. The loss compares with a £3.9bn pre-tax profit in 2017.
Underlying operating profits increased by £253m to £616m. However, there was an operating loss of £1.16bn, compared to operating profits of £366m in 2017.
The group has taken an exceptional charge of £790m to cover the anticipated costs of problems with its Trent 1000 engines.
Rolls-Royce says it has made “good progress” in fixing the issue. Despite the Trent 1000 problem, chief executive Warren East said “solid progress” was made, realising the group’s ambition to make 2018 a “breakthrough year, both strategically and financially”.