Rolls-Royce to hand £700 in shares to all staff as it bounces back

Aircraft engine maker's share price hits record high as it restores dividend for first time in five years

• Business live - latest updates

Rolls-Royce intends to hand 700 worth of shares to all employees after the company reported a bounceback in its business, raised its profit forecasts and restored dividend payments to shareholders.

The aircraft engine maker's chief executive, Tufan Erginbilgic, told staff in an internal message on Thursday that the FTSE 100 group would give 150 shares to every colleague, in every part of our organisation" in September, in news first reported by the Financial Times. Rolls-Royce employs 42,000 people worldwide, with about half of those staff in the UK. It is the first time the company has handed shares to employees.