Rolls-Royce: a great British success story

Rolls Royce has just posted a record set of results and has an order book to match. So are its shares worth a buy, or is it time to take profits? Phil Oakley investigates.

Everything looks rosy for Rolls-Royce. The company has just posted record profits, and has a record order book to match. Small wonder shares are close to all-time highs. The big question now is: is it time for existing shareholders to sell up and take their profits or can we expect even greater things from Rolls-Royce in the future?

There's no question that the 2011 results are Rolls-Royce's best ever. Revenues grew by 4% to £11.3bn, while profits before tax jumped 21% to £1.16bn. The dividend was raised by 9% to 17.5p per share. And at the year-end, Rolls-Royce had a record order book of £62.2bn more than five years' sales at current activity levels.

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.