New Rolls-Royce boss launches strategic review despite profits rise

Tufan Erginbilgic outlines need for further changes after unveiling 57% rise in profits to 650m

The new boss of Rolls-Royce has launched a sweeping review of the aircraft engine maker pledging there was much more" to come after last year beat expectations, sending shares up nearly 20%.

Tufan Erginbilgic, who joined as chief executive 1 January, said the FTSE 100 manufacturer had been underperforming financially for years" and outlined key areas for reform that he said would deliver materially higher profit, cashflows and returns". It followed his warning to employees last month that Rolls-Royce is a burning platform" that must transform to survive.