Opeyemi  Salau

 

 

Engine maker Rolls-Royce has reported a record annual loss of £4.6bn for 2016.

The loss was largely down to accounting charges linked to the slump in the pound, which affected the value of financial hedging products at the FTSE 100 giant.

But the figure also marks a difficult period in which it has had to settle global bribery and corruption claims with US, UK and Brazilian authorities – with fines totalling £671m.

On an underlying basis, profits fell 49% to £813m though this was better than expected.

The Derby-based group, which employs about half of its 50,000-strong workforce in the UK has been axing thousands of jobs over the last couple of years as part of a cost-cutting overhaul.

Chief executive Warren East said: “2016 has been an important year as we accelerated the transformation of Rolls-Royce.”

He said progress had been made in the group’s operations and efficiency programmes but added that “more needs to be done to ensure we drive sustainable margin improvements within the business”.