Connect with us

Business

Rolls-Royce warns UltraFan engine production could move overseas without UK government funding

Published

on

Rolls-Royce warns UltraFan engine production could move overseas without UK government funding

Rolls-Royce has signalled it could manufacture its next-generation UltraFan engine outside Britain unless the government provides financial support, raising fresh questions about the UK’s commitment to its aerospace industrial strategy.

The FTSE 100 engineering group, led by chief executive Tufan Erginbilgic, is seeking to re-enter the highly lucrative market for narrowbody, single-aisle aircraft engines, the fastest-growing segment of global civil aviation. However, it says industrialising the UltraFan platform for this market will require public backing, similar to the subsidies received by competitors in the United States and France.

UltraFan, a more fuel-efficient engine architecture developed over the past decade at a cost of around £1 billion, is central to Rolls-Royce’s long-term civil aerospace ambitions. But moving from research and development to full-scale production will hinge on government support, according to Erginbilgic.

“This kind of support of industry is not uncommon,” he said, pointing to the scale of state assistance available to rivals such as GE Aerospace and Pratt & Whitney in the US and Safran in France. “Our competitors get two or three times what we get. It is a competitive world and you need to think about that.”

Rolls-Royce has reportedly been seeking up to £200 million from the UK government and has held discussions with Business Secretary Peter Kyle. While the company recently announced plans for up to £9 billion in share buybacks over the next three years, Erginbilgic insisted industrial backing for major aerospace programmes is standard practice globally.

Advertisement

The chief executive argued that the UltraFan programme aligns directly with the government’s own industrial strategy, which identifies narrowbody engines as a critical growth opportunity.

“Narrowbody is the single biggest opportunity in a generation,” he said. “It is natural for the UK government to support it. Not supporting it would be a strange thing to do.”

Rolls-Royce is understood to be evaluating alternative manufacturing locations, including Germany, where it builds business jet engines, and the United States, where it produces military engines, if UK support does not materialise.

The economic implications could be significant. Erginbilgic claimed a domestic UltraFan narrowbody programme would support up to 40,000 jobs, create a new UK supply chain and generate at least £100 billion in long-term economic value. He estimated that every £1 invested could deliver £34 in economic growth.

Advertisement

“The amount we are asking from the government is a fraction of what we are investing ourselves,” he said, noting that Rolls-Royce has doubled its internal investment levels since 2022.

The company exited the narrowbody market in 2011 when it sold its stake in a joint venture with Pratt & Whitney, a move widely viewed as a major strategic misstep. Since then, Rolls-Royce’s civil aerospace business has been heavily reliant on long-haul engines such as the Trent XWB for the Airbus A350 and the Trent 1000 for the Boeing 787.

Re-entry into the short-haul market comes at a time when rivals are facing operational challenges. Pratt & Whitney has struggled with durability issues affecting its geared turbofan engines, leading to delivery delays and aircraft groundings across several airlines.

Erginbilgic said UltraFan would offer superior fuel efficiency and durability compared with current narrowbody engines and confirmed that Rolls-Royce is exploring industrial partnerships to share risk.

Advertisement

“We are talking to multiple parties,” he said.

With global demand for single-aisle aircraft expected to dominate the next aviation cycle, the government’s decision on funding could determine whether the next phase of Rolls-Royce’s civil aerospace expansion is anchored in the UK or moves abroad.


Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

Advertisement

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

California Resources set to report earnings ahead of merger close

Published

on


California Resources set to report earnings ahead of merger close

Continue Reading

Business

Sunstone Hotel Investors earnings beat by $0.04, revenue topped estimates

Published

on


Sunstone Hotel Investors earnings beat by $0.04, revenue topped estimates

Continue Reading

Business

Syensqo SA ADR 2025 Q4 – Results – Earnings Call Presentation (OTCMKTS:SYNSY) 2026-02-27

Published

on

OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

This article was written by

Seeking Alpha’s transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. The purpose of this profile is to allow us to share with our readers new transcript-related developments. Thanks, SA Transcripts Team

Continue Reading

Business

J.M. Smucker raises Hostess impairment costs by almost $1 billion

Published

on

J.M. Smucker raises Hostess impairment costs by almost $1 billion

Sweet Baked Snacks long-term growth outlook cut to 2%.

Continue Reading

Business

Writing on the wall for letter delivery in Australia

Published

on

Writing on the wall for letter delivery in Australia

Australia will eventually follow Denmark’s lead and abandon its letter service, with deliveries of handwritten notes, Christmas cards and household bills destined to become a thing of the past.

Continue Reading

Business

WWE’s Randy Orton Talks Retirement, Challenges Tom Brady to Take the RKO

Published

on

Randy Orton

WWE Superstar Randy Orton made an appearance on “The Pat McAfee Show” and openly talked about his retirement.

He also touched on NFL legend Tom Brady’s comments on WWE, challenging him to take an RKO.

Randy Orton on His Eventual Retirement

According to Sportskeeda, Orton got candid withh McAfee about his 26-year-long career and how long he thinks he has left in the ring.

“I’m 46 in a couple of months, and you know, I can’t do this forever,” the 14-time World Champion said. “I’ve been doing it for 26 years. If I could do it another decade, I will.”

Advertisement

“The work rate, the way that I wrestle, you know, maybe I could pull that out,” he added. “But I know that time’s coming.”

Orton also touched on the one thing he wants to be able to do before he retires, whenever that may be.

According to The Viper, he said he wants to become a world champion one more time.

“That’d be huge. I think right now you’ve got Triple H and myself tied at 14. John Cena, of course, just retired with 17 World Championships,” he said. “You got Ric Flair, I think it’s 16. I’d love to get one more, at least one more.”

Advertisement

“It would mean the world to me,” he admitted.

Orton Challenges Tom Brady to Take an RKO

Orton likewise addressed the comments made by Tom Brady, who called professional wrestling “cute.”

“10, 15, 20 years ago, I would have been hot. I would have had choice words to say for Tom Brady,” Orton admitted. “But every second I’m in that ring, I am soaking it up.”

According to SEScoops, Orton then went on to challenge Brady, saying, “Tom, if you want to take an RKO, dude — call Pat. Pat will call me.”

Advertisement

Watch Randy Orton’s full interview on “The Pat McAfee Show” below:

Continue Reading

Business

Netflix pulls out of Warner Bros Discovery bid after Paramount offer

Published

on

Netflix pulls out of Warner Bros Discovery bid after Paramount offer

Warner Bros. Discovery CEO David Zaslav may have been counting on watching one last round in the Netflix vs. Paramount Skydance boxing match to acquire the media company he runs. What he might not have anticipated was that Netflix wouldn’t even bother re-entering the ring.

Thursday after the market close, WBD announced that Paramount Skydance’s last and best offer of $31 a share for its film studio, streaming platform and cable networks was superior to Netflix’s previously accepted bid of $27.75 a share for the studio and streaming assets.

Advertisement

WBD’s declaration started a countdown clock: Netflix was granted four business days to match or beat Paramount’s new bid, but just an hour and 10 minutes later, Netflix left the arena.

NETFLIX BACKS OUT OF WARNER BROS BIDDING WAR AFTER PARAMOUNT MADE ‘SUPERIOR’ OFFER

ted sarandos netflix co-ceo

WBD said Paramount Skydance’s last and best offer of $31 a share for its film studio, streaming platform and cable networks was superior to Netflix’s previously accepted bid of $27.75 a share for the studio and streaming assets. Netflix co-CEO Ted Sa (Charley Gallay/Getty Images for Netflix / Getty Images)

In a joint statement, the streamer’s co-CEOs, Ted Sarandos and Greg Peters, said, “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.” 

Considering Sarandos’ tone in the final days of the process, the market should have been ready for the quick exit. In an interview Feb. 20 on FOX Business’ “Claman Countdown,” Sarandos, when pressed as to whether he’d match a potentially higher bid by Paramount Skydance, seemingly took a page out of former Berkshire Hathaway CEO Warren Buffett’s “never overpay for an asset no matter how much you want it” playbook.

Advertisement
The Netflix logo displayed on a building

Netflix was granted four business days to match or beat Paramount’s new bid, but just an hour and 10 minutes later, Netflix left the arena. (Mario Tama/Getty Images / Getty Images)

“We’ve been very disciplined buyers in our careers. Our shareholders know us and they expect us to continue to do what we do, which is remain a disciplined buyer,” Sarandos told FBN.

Netflix shareholders have never fully embraced the merger since the official bidding process began Nov. 20. Since then, Netflix shares have shriveled more than 19%.

Ticker Security Last Change Change %
NFLX NETFLIX INC. 84.61 +1.90 +2.30%
WBD WARNER BROS. DISCOVERY INC. 28.80 -0.10 -0.35%
PSKY PARAMOUNT SKYDANCE CORP. 11.18 +1.02 +10.04%

Much of the concern focused on whether the $82.7 billion dollar cost might shake Netflix’s solid balance sheet, and whether the deal would pass regulatory muster.

NETFLIX CO-CEO ACCUSES JAMES CAMERON OF SPREADING ‘MISINFORMATION’ ABOUT WARNER BROS. ACQUISITION

Advertisement
An aerial view of the Warner Bros. logo displayed on the water tower at Warner Bros. Studio

Netflix shareholders have never fully embraced the merger since the official bidding process began November 20. (Mario Tama/Getty Images / Getty Images)

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Thursday evening when WBD confirmed the superiority of Paramount’s bid, Netflix shares saw a relief rally, soaring nearly 10% in after-hours trade.

In its statement, Netflix’s co-CEOs intimated they agreed with shareholders.

“This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” Sarandos and Peters said.

Advertisement
Continue Reading

Business

SSE Airtricity to reduce gas prices by 8% from April

Published

on

SSE Airtricity to reduce gas prices by 8% from April

It means the annual gas bill of a typical household with a credit meter will reduce by £80 a year.

Continue Reading

Business

Laundryheap ramps up global expansion with four new market launches

Published

on

Laundryheap ramps up global expansion with four new market launches

On-demand laundry and dry-cleaning platform Laundryheap has accelerated its international growth strategy with launches in four new markets: Colombia, Mexico, Malaysia and Scotland.

The latest expansion sees the company enter Bogotá, Mexico City, Kuala Lumpur and Edinburgh, taking its total footprint to 28 cities across 16 countries. Existing markets include the United States, Singapore, the Netherlands, the UK, the UAE and France, with further launches planned throughout 2026.

Founded by Deyan Dimitrov, Laundryheap positions itself as the world’s largest on-demand laundry service, having served more than 400,000 customers globally and processed over 110 million items to date. The business has grown rapidly over the past five years, reporting 700 per cent growth since 2020 as consumers increasingly embraced app-based convenience services.

Dimitrov said the new openings marked a significant step in the company’s ambition to become the most trusted global brand in the sector.

“Our launches into Colombia, Mexico, Malaysia and Scotland mark another major milestone in Laundryheap’s journey to becoming the world’s most trusted name in on-demand laundry and dry cleaning,” he said. “Expanding into these vibrant markets reflects both the strength of our technology platform and the growing global demand for reliable, 24-hour turnaround services.”

Advertisement

Laundryheap’s app-based model allows customers to book collections for clothes and bedding, which are laundered or dry cleaned and returned within 24 hours. In select cities including London, Dubai and Abu Dhabi, the company introduced an Express Overnight service last year, offering turnaround times of as little as eight hours.

Beyond individual customers, the company has expanded into commercial partnerships, working with bars, restaurants, hotels and short-term rental operators. Corporate partners include Emirates Skywards, CitizenM and Klarna.

The expansion follows a series of strategic acquisitions aimed at consolidating the fragmented on-demand laundry market. Over the past three years, Laundryheap has completed seven acquisitions, including France’s Lavoir Moderne and Singapore-based Oppa Laundry. It previously acquired UK rival Laundrapp in 2022.

The company has raised £17 million in funding to date from investors including Alex Chesterman, Nickleby Capital, Verb Ventures, The Side by Side Partnership and Claret Capital Partners.

Advertisement

With fresh market entries in Latin America and Southeast Asia, and further planned growth in the United States and the Gulf region, Laundryheap is pursuing what it describes as its most aggressive international expansion strategy to date, as competition intensifies in the global on-demand services sector.


Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

Advertisement
Continue Reading

Business

Rathbones aims to become ‘best wealth manager in the UK’ after 53% profit jump

Published

on

Business Live

Analysts note ‘quiet revolution’ at FTSE 250 company as its profit before tax reaches £152.9m

The Port of Liverpool Building, home to the Liverpool office of Rathbone Brothers. Picture: ANDREW TEEBAY

The Port of Liverpool Building, home to the Liverpool office of Rathbones

FTSE 250 firm Rathbones has declared its ambition to become the “best wealth manager in the UK by far”.

Shares climbed 9% to 2,410 pence in early trading on Friday, notching up a 24.6% gain year to date, after the group said pre-tax profit leapt 53.5% to £152.9m, up from £99.6m the prior year. That was underpinned by the performance of integrated synergies and higher funds under management (FUMA) at the Liverpool-founded business.

Advertisement

The strong results come on the heels of a turbulent period for the broader UK wealth management sector, after several firms witnessed their share prices tumble following the launch of a new AI tool, prompting investors to question how artificial intelligence might reshape or even threaten the industry.

However, Rathbones chief executive Jonathan Sorrell, who assumed the role in August 2025, dismissed such fears, describing AI as a powerful tool that enables advisers to devote greater time to clients and nurture relationships, as reported by City AM.

He said: “We just feel that is a massive opportunity in terms of how it’s going to help achieve…change in our productivity as a business and the quality of service offering that we can provide.

“What it does is free up time to focus…on the human relationship we have with our client.”

Advertisement

The recent acquisitions of Schroders by American investment firm Nuveen and Evelyn Partners by high street bank Natwest has further fuelled debate around sector trends, though Sorrell maintained the market possesses “long term growth dynamics” and is not “cyclical”. He observed that Rathbone’s clientele, individuals holding assets between £1m and £5m, represent the fastest expanding segment of the market, whilst the drive by the sector and government to encourage greater investment presents “an exciting proposition”.

Whilst he recognised that the “industry will consolidate further over time” he emphasised Rathbone’s is solely seeking to “optimise” its existing operations, with dependable shareholders and the IW&I division positioning the firm for continued expansion.

FUMA climbed to £115.6bn, up from £109.2bn, supported by the market rebounding from first half lows triggered by Trump’s ‘Liberation Day’ tariff upheaval.

The firm confirmed it was extending its £50m share buyback scheme, which it completed in mid February, by £20m, with the group stating that it aims to deploy its “shareholders capital as efficiently as possible”.

Advertisement

The board proposed a final dividend of 68.0 pence per share, taking the annual total to 99.0 pence, a 6.5 per cent rise. The firm also highlighted the performance of its Investec Wealth and Investment (IW&I) division, which successfully completed its integration earlier in the year.

The operation surpassed expectations, delivering £76m on an annualised run-rate basis, considerably above Rathbones’ £60m target, and establishing the group as the UK’s largest discretionary wealth manager. Sorrel added that it had always set out “to maximise the opportunity” of integrating the business and “identified more areas” where IW&I could contribute to overall growth.

Rathbones also confirmed it wants to become the UK’s leading wealth manager, by establishing itself as the preferred choice for both clients and talent, whilst also enhancing its operational efficiency.

Rathbones still has a base at the waterfront Port of Liverpool Building, while it has another 20 offices across the UK including in Bristol, Cheltenham, Birmingham, Leeds, Manchester and Newcastle.

Advertisement

Rae Maile of Panmure Liberum observed that there is a “quiet revolution underway”, but cautioned that the wealth manager must stay committed to nurturing client relationships and strengthening capital efficiency.

He said: “Rathbones enjoys strong client relationships, but it must seek to grow new ones as well as managing more effectively inherent redemption activity. “.

“It will seek to do this through clearer definition of and enhancement to its investment capabilities, further penetrating its financial planning and advice capabilities.

“The intention is to simplify the operating model, removing internal frictions and barriers to decision-making and activity, but also to develop further its capital efficiency.”

Advertisement

Group finance director, Iain Hooley, further noted that rather than concentrating on securing a place in the FTSE 100 in its pursuit of market leadership, the firm is instead focusing its efforts on attracting older clients. Hooley stated: “The opportunity in the wider market with the ageing population, growing levels of wealth…the intergenerational transfer of wealth that’s going to happen, all of these things are definitely playing right into our space.”

Continue Reading

Trending

Copyright © 2025