We all know Rolls Royce for its luxurious vehicles as featured in the Instagram snaps of the rich and famous. A favorite amongst royals and the rich, the spirit of ecstasy has been made cool as the rappers who appreciate its utmost luxury have brought Rolls into the limelight. However, despite the range of cars on offer, the bulk of RR’s sales comes from its service contracts linked to engine sales.
Rolls Royce is an aerospace company first, before a car manufacturer. With the aviation industry brought to an almost halt in 2020, it’s no wonder the share price has taken a tumble. But I believe it’s poised for a relentless comeback. The company is due to release its earnings in the middle of next month and I expect they will leave a bad taste in the mouth of many shareholders. Though with over 20 million vaccines already, Britain is well on its way to grasping the future and putting coved behind us.
Airlines are already filling up their seats again and analysts say we can expect a 20% increase to pre-covid levels very soon.
Warren East, the main boss there has slashed over 7,000 jobs under the firm restructuring program. Last year we saw that in October 2020, over 6 billion shares were issued to raise an emergency capital fund in an agreement to existing shareholders that they can purchase each share for 32p each for every three years that they had already held shares. This is an unbelievable bargain as the shares currently sit at 94p. Rolls Royce will easily jump up to 100p per share at the very least and when this train starts moving, you’ll struggle to jump on the bandwagon quickly enough.