Manufacturing big Rolls Royce has reported a web lack of £3.9 billion for monetary 2020 because the Covid-19 pandemic took an enormous toll on the aviation sector.
The British firm noticed income fall from £15.four billion to £11.7 billion over the yr.
Rolls Royce has reduce 7,000 jobs over the previous 12 months and has been compelled to lift money from buyers to bolster its funds.
Releasing its outcomes, the agency stated it had liquidity of £9 billion readily available, having protected its monetary place with £7.Three billion of recent debt and fairness.
The corporate additionally launched a programme to lift not less than £2 billion from disposals.
Warren East, Rolls Royce chief government, stated: “The affect of the Covid-19 pandemic on the group was felt most acutely by our civil aerospace enterprise.
“In response, we took rapid actions to handle our price base, launching the most important restructuring in our current historical past, consolidating our international manufacturing footprint and delivering vital price discount measures.
“We have now taken decisive actions to boost our monetary resilience and completely enhance our operational effectivity, leading to a regrettable, however sadly very vital, discount within the measurement of our workforce.”
He added: “With the assist of our stakeholders we efficiently secured extra liquidity with a rights challenge, bond issuance and additional credit score amenities put in place through the yr.
“We have now made a great begin on our programme of disposals and can proceed with this in 2021.
“We proceed to put money into creating market-leading know-how and low carbon alternatives in all our finish markets, to create worth for our stakeholders and guarantee we’re properly positioned to benefit from the transition to a decrease carbon economic system and rising demand for extra sustainable energy options.”
The Derby-based firm expects to burn via one other £2 billion money this yr because it continues to restructure the enterprise.
Rolls Royce has additionally warned it might must slash an extra 2,000 jobs.
Picture: Rolls Royce