- Engineering company Rolls-Royce booked a first-half loss, owing to restructuring charges and costs associated with fixing blade problems in its Trent 1000 engines.

The company, however, stuck to its guidance for the full year of achieving an underlying profit and free cash flow of £700m, plus or minus £100m.

Pre-tax losses for the six months through June amounted to £791m, compared to losses of £1.23bn on-year.

Underlying operating profit rose 32% to £203m, as revenue rose 7% to £7.35bn.

'We delivered further progress across the group in the first half in line with our full year expectations,' chief executive Warren East said.

'We expect a significant improvement in cash in the second half as we unwind inventory built up to support customer deliveries and benefit from improved trading in both power systems and civil aerospace.'

East said the company had made good progress on resolving the Trent 1000 engine issues,' though regretfully, customer disruption remains'.

Progress on the restructuring programme, which involved thousands of job cuts, was is in line with a plan outlined a year ago.

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