Why Rolls-Royce is closing its doors for two weeks – .

Why Rolls-Royce is closing its doors for two weeks – .

Stallard says the latest developments in the coronavirus mean that Rolls’ forecast is now “hopelessly out of date – anyone can see what’s going on in long-haul travel” with lockdowns, travel restrictions and people unwilling to have it all. just don’t risk intercontinental flights.

Interim results from Aug. 5 could mean Rolls will rebase those forecasts, the analyst said. At full year figures, the company stuck to its forecast of positive cash flow in the second half of 2021 and generation of £ 750 million in 2022.

“They have a new CFO,” Stallard said, referring to former Deloitte and PA Consulting executive Panos Kakoullis, who replaced Stephen Daintith in May.

Stallard adds, “Maybe a new man will be able to reverse those predictions, saying it’s going to be another big loss this year, and next year they could break even. “

Not everyone likes closure

As summer approaches, some Rolls employees might expect two weeks out of the office or factory and in the sun. But despite the company’s working with unions to get employees to make the shutdown work, this has not been universally adopted.

“It was a tough decision taken in tough times,” says Tony Tinley, who worked for Rolls in Derby for 17 years before becoming a regional manager for Unite. “The reality is that the staff accepted it but not wholeheartedly: around 60% voted for it. It’s not a big endorsement.

He thinks the closure is more symbolic than financial. “It got the ball rolling and sent a message to the market that the workforce is ready to do whatever it takes to support Rolls,” Tinley said. He believes this helped convince the government to sign up for financial support through UKEF.

But matching resources to work is a tough business that closing might not resolve, he says: “Manufacturing work has always been spotty, it’s weird when we see some people being called in for overtime now and Rolls is about to close. “

It’s unclear what Derby will look like over the next fortnight. But despite so many staff employed by the famous engineer, and other companies that feed him, there is a sense of optimism among some.

Iain MacPherson, director of the House of Darwin gastro pub near the Rolls factories, thinks the closure could be good for business. “We’re just around the corner from the main site, so we get a lot of Blue Collar Rolls for a pint after work,” he says.

“Maybe with the zipper they’ll arrive in shorts and t-shirts, instead of the Rolls-Royce shirts they normally wear. “

Colin Wilde, managing director of Castle Rock Brewery, which runs the Alexandra Hotel in Derby, is also hoping for a boost. “To have thousands of people having free time in Derby is fantastic,” he says. “We’re here to serve – there are definitely worse ways to spend two weeks. ”


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