Rolls-Royce, the jet engine manufacturer, will burn through way more cash this year than investors feared because the second wave of the pandemic is having a much bigger impact on the aviation industry than previously thought.
The Derby-based engineer, which last year went through a £5 billion rescue refinancing, said in an unscheduled statement to the stock exchange that it expected cash outflows of £2 billion in 2021.
Rolls had previously signalled that it expected cash to continue disappearing in 2021 but it had not put a figure on it. City analysts had reckoned that the number would be between £1 billion and £1.5 billion as economies and the aviation industry recover this year.
Less than four weeks into the new year, Rolls has indicated