Rolls-Royce confirms stockpiling ahead of Brexit

Rolls-Royce reached a settlement with the Serious Fraud Office over corruption allegations in January.

Rolls-Royce has become the latest manufacturer to make plans to stockpile ahead of Brexit.

The aerospace firm confirmed this week that it has activated contingency plans in attempts to minimise the impacts of a disorderly no-deal Brexit scenario. 

The company said: it had begun to “build inventory as a contingency measure. We will continue to implement our contingency plans until we are certain that a deal and transition period has been agreed.”

Adam Marshall, who is the director general of the British Chambers of Commerce, acknowledged the widespread concern among retailers and manufacturers operating in the UK.

He said: “The utter dismay amongst businesses watching events in Westminster cannot be exaggerated. Our firms are worried, investors around the world are baffled and disappointed, and markets are showing serious strain as this political saga goes on and on.”

On Wednesday, Rolls-Royce confirmed that it expects profits to be towards the upper end of its guidance.

Shares in the group increased as it said in a statement: “This reflects supply chain challenges that are affecting the whole civil aero engine sector and also early stage production ramp-up challenges on our new Trent 7000 engine. As we move into 2019 we are confident that Trent 7000 production and delivery volumes will increase significantly to meet our customer commitments.”

“We have continued to make progress reducing large engine OE unit losses and will provide more details on this with our full-year results in February 2019.”

Rolls-Royce plans to update investors once there is more certainty on Brexit developments.

Shares in the group (LON: RR) are currently trading at 815,20 (0944GMT).