Questions and Answers
In which year was Rolls-Royce Holdings plc incorporated?
What is Rolls-Royce's market share in the commercial aircraft engine market as of 2020?
What was the name of the company created by the government in 1971 to buy Rolls-Royce's business and assets?
Where is Rolls-Royce Holdings plc's registered office located?
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What was the market capitalisation of Rolls-Royce Holdings plc at the close of London trading on 28 August 2019?
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In what year did Rolls-Royce Group plc pass ownership to Rolls-Royce Holdings plc?
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What was the main area of growth for Rolls-Royce between 2010 and 2018?
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What was the value of the funding agreement with the UK Space Agency in 2023?
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What was the reason for Rolls-Royce's profit warnings in 2014 and 2015?
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What type of contracts did Rolls-Royce sell many of its aero-engines with?
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Study Notes
Company Overview
- Rolls-Royce Holdings plc is a British multinational aerospace and defence company, incorporated in February 2011.
- The company is the world's second-largest maker of aircraft engines, behind CFM International.
- Major sectors include aviation, marine propulsion, and energy.
Historical Context
- Rolls-Royce was founded in 1904, evolving from the engineering business of Henry Royce established in 1884.
- The partnership with Charles Rolls led to the creation of Rolls-Royce Limited in 1906.
- The original Rolls-Royce Limited went into voluntary liquidation in 1971; its assets were acquired by the government to form Rolls-Royce (1971) Limited.
Market Position and Financials
- Ranked 16th largest defence contractor in 2018, based on defence revenues.
- As of 2020, it held a 12% market share in commercial aircraft engines, making it the fourth largest in this category.
- By August 28, 2019, Rolls-Royce had a market capitalisation of £4.656 billion, ranking 85th among companies listed on the London Stock Exchange.
Business Development and Growth
- The civil engines business is the main growth area, having expanded its engine fitment across 17 airliner types.
- Between 2010 and 2018, the company invested £11 billion in research and development, resulting in the launch of six new civil engines, including Trent XWB and Pearl 15.
- Anticipates producing over 600 wide-body engines annually, aiming to power over half of the world's wide-body fleet.
Recent Initiatives
- In 2023, Rolls-Royce secured $3.52 million from the UK Space Agency to develop a nuclear reactor for moon missions, aimed at supporting space exploration.
Challenges and Strategic Moves
- In response to market pressures, including US defence cuts and oil downturns, the company issued multiple profit warnings between 2014 and 2015 and cut over 3,000 jobs.
- Rolls-Royce had traditionally sold engines with long-term service contracts ("TotalCare"), but faced challenges in recognizing revenues from these contracts due to unprofitability issues.
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Description
Learn about Rolls-Royce Holdings plc, a British multinational aerospace and defence company incorporated in 2011. The company designs, manufactures, and distributes power systems for aviation and other industries.
