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#BRES Blencowe Resources PLC – Successful Hypersonic Rocket Testing
Blencowe Resources Plc (LSE: BRES) is pleased to report further successful testing of Orom-Cross graphite products within advanced aerospace and defence applications.
On 18 August 2026 American Energy Technologies Co (“AETC”), Pluto Aerospace, Purdue University and US Government Agencies, together with Blencowe COO Iain Wearing, attended a rocket test programme in Las Cruces, New Mexico. The successful Pluto Aerospace solid-fuel rocket flight achieved a maximum speed of Mach 5.5 and acceleration approaching 150G, representing a substantial increase in speed and acceleration from the previous test programme undertaken in April.
Importantly, Orom-Cross graphite was incorporated across multiple critical components aboard the hypersonic vehicle, including an ablative rocket nozzle insert, performance-enhancing coatings applied to the rocket fins and natural graphite used within the lithium-ion battery powering the rocket’s altimeter.
The successful test further demonstrates the potential for Orom-Cross graphite to access specialist, high-value aerospace and defence markets, supporting Blencowe’s strategy to continually develop higher-value product pathways as Orom-Cross advances towards production.
Highlights
· Successful hypersonic rocket flight in the USA incorporating Orom-Cross graphite across multiple critical components
· Pluto Aerospace rocket achieved a maximum speed of Mach 5.5 and acceleration approaching 150G
· Orom-Cross graphite incorporated within an advanced ablative rocket nozzle insert manufactured by AETC
· Orom-Cross natural graphite used in performance-enhancing anti-friction and ice-phobic coatings applied to the rocket fins
· Lithium-ion battery powering the rocket’s altimeter used natural graphite supplied by Blencowe alongside recycled graphite, with zero synthetic graphite
· Successful testing further demonstrates the potential for Orom-Cross graphite within high-value aerospace and military applications
· High-end defence applications provide potential pathways to new strategic offtake relationships and funding opportunities
· Continued collaboration with US graphite technical specialist AETC is opening further value-added applications for Orom-Cross graphite
· Further orbital testing planned for Q4 2026
Blencowe provided graphite concentrates from Orom-Cross to technical partner AETC, which manufactured mouldings for rocket and missile exhaust nozzles replacing a proportion of the synthetic graphites normally used in these applications. The resultant nozzles underwent rigorous testing prior to installation on the rocket.
The initial testing programme is being undertaken with Pluto Aerospace for hypersonic sub-orbital rockets, with orbital testing planned for the final quarter of 2026.
The successful flight conducted on 18 August 2026 utilised a substantially larger motor than the previous test undertaken in April, achieving a maximum speed of Mach 5.5 and acceleration approaching 150G.
In addition to the highly innovative rocket motor, Orom-Cross graphite was incorporated into several important components aboard the hypersonic vehicle:
· an advanced ablative nozzle insert manufactured by AETC for enhanced thrust performance;
· performance-enhancing anti-friction and ice-phobic coatings applied to the rocket’s four aluminium fins; and
· natural graphite used within the lithium-ion battery powering the rocket’s altimeter.
Of special note is the application of 3.8 Ah pouch cells, manufactured by Navitas Systems incorporating manufactured natural graphite supplied by Blencowe together with recycled graphite produced through AETC’s direct recycling process. The battery incorporated up to 15 wt.% recycled and “healed” graphite produced through AETC’s direct recycling process and represents the first known example in the North American battery industry of a fully functional form-factored battery incorporating industrially manufactured recycled graphite as a significant component of both the active material and cathode conductivity additive.
Importantly, the battery, comprised of 100% natural flake graphite from raw and recycled materials, with no synthetic graphites, further demonstrating the potential for Orom-Cross graphite to be utilised within specialist, high-value military and aerospace applications.
With the launch of this rocket, Pluto Aerospace and AETC highlighted a group of trusted vendors and raw material suppliers involved in the programme, including Navitas Systems, an advanced U.S. battery manufacturer; Blencowe Resources plc, the supplier of Orom-Cross graphite used in rocket nozzles, battery and ice phobic coatings aboard the flight; and Cadoux Limited, a supplier of nanoscale alumina used as a critical safety component of lithium-ion batteries.
Executive Chairman Cameron Pearce commented:
“These results continue to highlight the emergence of Orom-Cross graphite as an important source of high-quality graphite products for use in military and aerospace applications. There are relatively few graphite projects worldwide capable of supplying the quality of products required for these specialist applications, which may open new offtake relationships and strategic opportunities and places Orom-Cross in a strong position moving forward as we advance towards first production.”
As we complete funding for P1 Production and move to building the first stage of operations, we are continuously testing new products and adding new offtakers, each of which builds further value within the Project. Our strategy is to differentiate Orom-Cross from other graphite projects by targeting the most lucrative markets available to us, through both our products and strategic relationships.”
For further information please contact:
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Blencowe Resources Plc |
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Sam Quinn (Director) |
Tel: +44 (0)1624 681 250
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Sasha Sethi (Investor Relations) |
Tel: +44 (0) 7891 677 441
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Tavira Financial (Joint Broker):
Jonathan Evans |
Tel: +44 (0)20 3192 1733 |
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Oak Securities (Joint Broker): Mungo Sheehan / Jerry Keen |
Tel: +44 (0)20 3973 3678 |
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Cavendish (Joint Broker):
Neil McDonald / Peter Lynch / Hanna Leijonmarck |
Tel: +44 (0) 20 7908 6000 |
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Diagram 1 : Showing latest Pluto rocket tested using Orom-Cross graphite
Diagram 2 : Rocket nozzle utilising Orom-Cross materials
Diagram 3 : Rocket Fins with Orom-Cross Ico phobic coatings applied to four sides (different samples), plus control sample (beige side)
Diagram 4 : Battery cell composed of 85% natural graphite (Orom-Cross) and 15% recycled graphite
#BRES Blencowe Resources PLC – Rocket Component Testing Programme
Blencowe Resources Plc (LSE: BRES) is pleased to announce that graphite concentrate from its Orom-Cross Graphite Project in Uganda has been used in a rocket component testing programme in the United States (California), with the initial test firing successfully completed and early observations indicating encouraging performance in high-temperature applications.
The Company provided Orom-Cross graphite concentrates to American Energy Technologies Company (“AETC”) who manufactured mouldings designed for use in rocket propulsion nozzles, including defence-related test applications. These nozzles were developed to evaluate the replacement of a percentage of the synthetic graphite typically used in such components and to assess the suitability of Orom-Cross material in high-temperature environments.
A recent test firing programme was attended by representatives from Pluto Aerospace, Purdue University and various US Government Agencies alongside Blencowe’s Chief Operating Officer Iain Wearing. The programme successfully completed the planned test runs, and data is now being analysed by the parties involved. Blencowe expects to provide further updates as additional milestones are reached.
The testing application was conducted with Pluto Aerospace on its hypersonic sub-orbital rocket platform in the initial programme. Further testing is planned and, subject to programme scheduling and technical outcomes, orbital testing is expected in the latter half of 2026.
In parallel, AETC has also been testing graphite-based coatings applied to rocket fin components to evaluate durability under hypersonic conditions and icephobic properties (surfaces designed to repel ice, prevent ice formation, or significantly reduce ice adhesion), with potential applicability across military and civilian aircraft environments. While the recorded data remains under analysis, initial observational performance has been encouraging, and the Company will update the market as results become available.
Strategic relevance and Next Steps
· Real-world validation: live firing provides an important proof point beyond laboratory testing
· Specialty market potential: propulsion nozzle and coating applications may represent another niche, high-value pathway for a portion of Orom-Cross production
· Military and space programme applications: the more value-enhancing strategic relationships Blencowe and AETC can build within US Government agencies, and associated technology providers, the more likely offtakes and/or funding from this direction
· Programme progression: further testing is planned/expected, subject to counterparties’ schedules, qualification requirements and programme timing
The Company notes that elements of these programmes involve both government and commercial stakeholders and are subject to strict confidentiality and third-party processes. Accordingly, Blencowe will provide updates as and when disclosure is permitted and appropriate in line with its regulatory obligations.
Executive Chairman Cameron Pearce commented:
“These latest tests are an encouraging validation step to highlight the importance of high-quality graphite in specialist defence, aerospace and energy applications. We thank AETC for their support in enabling real-world evaluation of Orom-Cross material.
Proof that Orom-Cross product stands up to the most rigorous testing validates both the quality of our products as well as the use of graphite within these applications.
Demonstrating performance in live rocket test conditions with various US Government agencies in attendance showcases Orom-Cross graphite at the highest levels. With further testing phases planned, including orbital testing expected in the latter half of 2026, we believe this supports higher-value offtake pathways beyond standard concentrate sales. These all help to continuously add more value to our overall Orom-Cross strategy and our commercial model.”
Image 1: Pluto Aerospace hypersonic sub-orbital test vehicle prior to firing (California, USA).
Image 2: Graphite-based coating trial on fin components (durability and icephobic testing).
Image 3 – Graphite coating on specialist military and aerospace products
For further information please contact:
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Blencowe Resources Plc |
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Sam Quinn (Director) |
Tel: +44 (0)1624 681 250
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Sasha Sethi (Investor Relations) |
Tel: +44 (0) 7891 677 441 |
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Tavira Financial (Joint Broker):
Jonathan Evans |
Tel: +44 (0)20 3192 1733 |
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Oak Securities (Joint Broker):
Calvin Man /Mungo Sheehan / Jerry Keen |
Tel: +44 (0)20 3973 3678 |
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#SVML Sovereign Metals Limited – Japanese Titanium Producer Validates Kasiya Rutile
LEADING JAPANESE TITANIUM PRODUCER VALIDATES KASIYA RUTILE FOR HIGH-SPECIFICATION APPLICATIONS
· Test work by Japan’s Toho Titanium has confirmed that natural rutile from Kasiya is suitable for producing high-performance titanium metal products
· Japan accounts for over 15% of global titanium production capacity and over 60% of non-sanctioned, aerospace-grade titanium, i.e. excluding China and Russia
· Titanium is essential for high-growth industries, including aerospace, defence, and space exploration
o In 2024, global defence spending increased by 7.4% year on year to US$2.46 trillion with titanium critical for advanced fighter aircraft, naval vessels, and precision weapons systems
o Consumption of titanium in the aerospace industry is forecast to grow by a compound annual growth rate (CAGR) of 7% over the next decade, more than doubling to 132kt by 2034
Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX:SVMLF) (Sovereign or the Company), developer of the world’s largest known natural rutile deposit, is pleased to announce that one of Japan’s premier titanium metal (sponge and ingot) producers, Toho Titanium Company Limited (Toho Titanium), has confirmed the suitability of natural rutile from Sovereign’s Kasiya Rutile-Graphite Project (Kasiya or the Project) for manufacturing high-specification titanium products critical to aerospace and industrial applications.
Toho Titanium’s analysis of a sample of rutile from Kasiya concluded that “it is of a quality that can be used without any issues”. Kasiya’s rutile surpassed the requirements for TiO2 grade (>95%), low or no deleterious elements, low radiation value, and suitable particle size distribution and density.
Toho Titanium represents a cornerstone supplier in the global titanium value chain, with combined decades of expertise serving the world’s most demanding aerospace and industrial manufacturers. Toho Titanium, together with Japan’s other major titanium metal producer, Osaka Titanium Technologies Co., Ltd. (Osaka Titanium), account for over 15% of global titanium production capacity and over 60% of non-sanctioned, aerospace-grade titanium metal production (i.e. excluding China, which is not qualified to produce aerospace-grade titanium, and Russia).
Toho Titanium occupies a critical position in titanium supply chains, supporting the aerospace industry across the United States, Europe, and the Indo-Pacific region. Recent geopolitical developments have intensified focus on secure titanium supply chains, creating unprecedented strategic opportunities and strengthening the strategic nature of Kasiya as a future supplier of high-grade titanium feedstock.
Managing Director and CEO Frank Eagar commented: “The validation by Toho Titanium – one of the world’s most respected titanium producers – once again confirms Kasiya’s rutile as a premium and purest form of titanium feedstock for the titanium metals industry. Toho Titanium supplies the most demanding aerospace applications globally, such as Boeing and Airbus commercial aircraft. Confirmation that our rutile meets Toho Titanium’s exacting standards for high-specification titanium production validates our position as a future cornerstone supplier to critical industries. With the world’s largest known rutile deposit, Sovereign is uniquely positioned to capitalise on the intersection of resource security, aerospace supply chain realignment, and national defence priorities. Kasiya’s exceptional scale and quality, combined with Malawi’s stable jurisdiction, offers unparalleled exposure to one of the most strategic and rapidly growing mineral markets of our time.”
Kasiya Rutile Suitable for all Major End-Use Markets
Bulk scale metallurgical test work conducted by Allied Mineral Laboratories in Australia has previously confirmed that a premium-grade rutile product can be produced via a simple, conventional process flow sheet with no requirements for flotation or acid leaching.
World-class specification rutile products were reported ranging from 95.0% to 97.2% TiO2 with low impurities and exceptional metallurgical recoveries of up to 100% (Refer to ASX Announcement: “Outstanding Metallurgical Results at Kasiya” dated 7 December 2021).
The premium chemical parameters and particle sizing (d50 126μm, 8.6% <75μm) of Kasiya’s rutile indicate that the product is suitable for all major end-use markets. Specifically, Kasiya’s rutile product specification makes it a suitable feedstock for superior, high-performance titanium metal products.
Confirmation that Kasiya’s rutile can be used by Toho Titanium establishes Sovereign Metals as a credible future supplier to the global titanium industry’s most discerning customers. This technical endorsement, combined with Kasiya’s unmatched scale and strategic location, positions Sovereign as a potential market leader in the titanium supply chain.
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Table 1: Kasiya Rutile Specification |
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Constituent |
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Kasiya (Sovereign Metals) |
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TiO2 |
% |
95.7 |
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ZrO2+HfO2 |
% |
0.18 |
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SiO2 |
% |
0.70 |
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Fe2O3 |
% |
0.98 |
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Al2O3 |
% |
0.44 |
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Cr2O3 |
% |
0.10 |
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V2O5 |
% |
0.58 |
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Nb2O5 |
% |
0.37 |
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P2O5 |
% |
0.018 |
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MnO |
% |
0.007 |
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MgO |
% |
0.001 |
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CaO |
% |
0.011 |
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S |
% |
0.005 |
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U+Th |
ppm |
30 |
Selected rutile product specification derived from bulk testwork on samples representing the first three years of mining, which is broadly representative of the overall Kasiya Ore Reserve.
Figure 1: 2024 Global Titanium Sponge Production Capacity by Non-Sanctioned Countries Qualified to Produce Aerospace-Grade Titanium Products
(Source: US Geological Survey; “Other” includes USA and India)
Figure 2: Processed rutile sample from Kasiya
Titanium’s Growing Strategic and Critical Status
According to the International Institute for Strategic Studies, a world-leading authority on global security, political risk and military conflict, global defence spending surged to US$2.46 trillion in 2024, representing a 7.4% real-terms increase as nations respond to escalating security challenges. This increase in defence expenditure is driving unprecedented demand for titanium-intensive military platforms, including advanced fighter aircraft, naval vessels, and precision weapons systems.
Titanium’s unique properties – exceptional strength-to-weight ratio, corrosion resistance, and high-temperature performance – makes it irreplaceable in many conventional and advanced military systems. Consequently, titanium has been officially classified as a critical mineral by the United States, European Union, United Kingdom, Canada, Australia, and Japan, reflecting its strategic importance to national security and economic competitiveness.
The ongoing conflict in Ukraine and rising tensions in the Indo-Pacific have highlighted critical vulnerabilities in titanium supply chains, as titanium production is concentrated in geopolitically sensitive regions. Historical supply dependency on Russia prompted an urgent reassessment of supply security, and in December 2024, NATO designated titanium as a defence-critical, strategic mineral essential for the Allied defence industry.
The recent signing of various critical minerals cooperation agreements, including between the United States and Saudi Arabia, announced during U.S. President Donald Trump’s May 2025 visit, underscores the strategic importance of titanium supply security. Notably, Toho Titanium’s joint venture facility in Saudi Arabia, operating at full capacity with an annual production of 15,000 tonnes, demonstrates the growing importance of secure titanium supply partnerships outside traditional Russian and Chinese-dominated markets.
Aerospace Sector Driving Unprecedented Titanium Demand
The commercial aerospace sector is one of the fastest-growing sources of titanium demand, driven by the ramp-up of commercial aircraft production, next-generation engine programs, and expanding global aviation capacity. Each modern commercial aircraft contains 15-20 tonnes of titanium components, concentrated in critical structural elements, engine components, and landing gear systems. The consumption of titanium in the aerospace industry is forecast to grow at a CAGR of 7% over the next decade, more than doubling to 132kt by 2034 (Source: Project Blue market intelligence).
According to PricewaterhouseCoopers, the aerospace and defence industry saw an 11% increase in revenues in 2023 to US$829 billion, with civil aviation companies leading the way. Boeing Commercial Airplanes’ revenue increased by 30%, with revenues from tier 1 suppliers GE Aerospace, Rolls-Royce, and Safran being higher by more than 20%.
Aircraft manufacturers reported that titanium shortages have impacted production schedules following the disruption of supply from Russia by sanctions and import restrictions. In April 2025, Airbus signed a titanium supply agreement with Saudi Arabia, demonstrating the importance of securing alternative supply chains outside Russian-dominated markets.
According to CAPA – Centre for Aviation, Boeing’s and Airbus’s combined backlogs exceed over 14 years with each aircraft requiring substantial titanium content for structural components and engine systems, while traditional supply sources remain constrained by geopolitical sanctions and trade restrictions.
About Toho Titanium
Toho Titanium, established in 1953, is a leading producer of titanium metals with significant production capacity. Toho Titanium produces 25,000 tonnes of titanium metals per annum, excluding 15,000 tonnes from a joint venture facility in Saudi Arabia. The company operates advanced manufacturing facilities that supply critical materials for aerospace and industrial markets.
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Enquiries |
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Frank Eagar, Managing Director & CEO South Africa / Malawi +27 21 140 3190 Sapan Ghai, CCO London +44 207 478 3900 |
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Broker |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Buchanan |
+ 44 20 7466 5000 |
Forward Looking Statement
This release may include forward-looking statements, which may be identified by words such as “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These forward-looking statements are based on Sovereign’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
The information contained within this announcement is deemed by Sovereign to constitute inside information as stipulated under the Regulation 2014/596/EU which is part of domestic law pursuant to the Market Abuse (Amendment) (EU Exit) Regulations (SI 2019/310) (“UK MAR”). By the publication of this announcement via a Regulatory Information Service, this inside information (as defined in UK MAR) is now considered to be in the public domain.
Competent Persons Statement
The information in this presentation that relates to the Exploration Results (metallurgy – rutile) is extracted from announcements dated 7 December 2021, 16 December 2021, 28 September 2023 and 22 January 2025 which are available to view at www.sovereignmetals.com.au. Sovereign confirms that a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this report have not been materially changed from the original announcements.
The information in this announcement that relates to Production Targets, Ore Reserves, Processing, Infrastructure and Capital and Operating Costs is extracted from an announcement dated 22 January 2025, which is available to view at www.sovereignmetals.com.au. Sovereign confirms that: a) it is not aware of any new information or data that materially affects the information included in the original announcement; b) all material assumptions and technical parameters underpinning the Production Target, and related forecast financial information derived from the Production Target included in the original announcement continue to apply and have not materially changed; and c) the form and context in which the relevant Competent Persons’ findings are presented in this presentation have not been materially modified from the original announcement.
In relation to the disclosure of visual information, Sovereign cautions that the images displayed are for general illustrative purposes only, and that the samples displayed and visual methods of mineralisation identification and estimation of mineral abundance should not be considered as a proxy or substitute for laboratory analysis. Laboratory analysis would be required for the grades of mineralisation. Visual information also potentially provides no information regarding impurities or deleterious physical properties relevant to valuations.
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Enquiries |
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Frank Eagar, Managing Director & CEO South Africa / Malawi +27 21 140 3190
Sapan Ghai, CCO London +44 207 478 3900 |
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Broker |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Buchanan |
+ 44 20 7466 5000 |
Atlantic View – Rolls Royce has the tools to engineer a recovery
by John Woolfitt, Atlantic Capital Markets
Rolls Royce has the tools to engineer a recovery.
Fundamentals & Statement Summary
Aero engineering giant Rolls-Royce (RR.) this morning unveiled interim results for H1 2020, and reported a significant H1 impact from COVID-19, adding that the timing and shape of industry recovery remains uncertain. The group reported a 24% fall in underlying revenues of £5.6bn, down 24%, and an operating loss of £1.7bn including one-off charges of £1.2bn in Civil Aerospace, largely related to COVID-19. The reported loss before tax of £5.4bn included a £2.6bn non-cash loss from the revaluation of the FX hedge book, reflecting lower forecast US$ receipts.
Rolls also reported good liquidity of £6.1bn comprising £4.2bn of cash at 30 June, and a £1.9bn undrawn revolving credit facility (RCF). A further £2bn undrawn term loan was also announced in July and finalised in August. The group ended H1 with net debt of £1.7bn excluding lease liabilities (FY 2019 net cash of £1.4bn).
The group reported successful actions to reduce costs, with £350m delivered in H1 towards a 2020 target of £1bn. These actions included a fundamental restructuring of Civil Aerospace, with a 4,000 group headcount reduction by 27 August, with further potential disposals expected to raise at least £2bn, including ITP Aero and other assets.
The Board decided that given the uncertain macro outlook they would no longer be recommending a final shareholder payment of 7.1 pence per share in respect of 2019, resulting in cash savings equivalent to £137m. For the same reasons, the Board has not approved an interim shareholder payment for 2020. A range of options to further strengthen the balance sheet are currently under review.
CEO Warren East commented: “We ended 2019 with good operational and financial momentum. However, the COVID-19 pandemic has significantly affected our 2020 performance, with an unprecedented impact on the civil aviation sector with flights grounded across the world. We have responded rapidly to increase our liquidity, with £6.1bn at the end of H1 and a further £2.0bn term loan agreed in H2, to help weather the continued uncertainty around the timing and shape of the recovery in the civil aviation sector. We have made significant progress with our restructuring, which includes the largest reorganisation of our Civil Aerospace business in our history. This restructuring has caused us to take difficult decisions resulting in an unfortunate but necessary reduction in roles. These actions will significantly reduce our cost base, which combined with recovery in Power Systems and continued resilience in Defence, will help us to deliver significantly improved returns as the world recovers from the pandemic.
While our actions have helped to secure the Group’s immediate future, we recognise the material uncertainties resulting from COVID-19 and the need to rebuild our balance sheet for the longer term. We have identified a number of potential disposals that are expected to generate proceeds of more than £2bn, including ITP Aero and a number of other assets. Furthermore, in light of ongoing uncertainty in the civil aviation sector, we are continuing to assess additional options to strengthen our balance sheet to enable us to emerge from the pandemic well placed to capitalise on the long-term opportunities in all our markets.”
Chart and Technicals
Source: FactSet and Hargreaves Lansdown
In line with aerospace industry stocks and the majority of FTSE100 constituents, RR shares fell sharply through February and into March, twice bouncing off a 250p then multi-year low. Despite recovering and punching back above the 50-day moving average in May, the stock succumbed again at the start of July, trading below the yellow MA envelope, even briefly dipping below 250p to set a new multi-year low at 212p before recovering in the run up to the results. The NVI (negative volume index (traded volume to determine trend strength or confirm a price movement) has improved since the end of June, and if RR can ‘climb back’ into the price range envelope after the results today, and in the process regain the 50-day moving average, then recovery of the falling 200-day MA is possible, although expect a retest of 212p multi-year lows before any sustained recovery.
Summary and Atlantic View
While it’s aerospace counterparts face something akin to a perfect storm, as a corporate entity Rolls Royce has many more strings to its proverbial bow. It is this multi-sector offering that will ultimately be the saviour of this iconic company, and while the group are rightly hailed as the world’s leading aero engine manufacturer, a solid cash / liquidity position has enabled Rolls Royce to pivot rapidly to meet the COVID challenge. A resilient ongoing defence business performance and a recovery in Power Systems provide Rolls with the time to decide on the best course of action to restructure and streamline the aerospace business, and with actions / disposals already underway in this regard, the catalysts will soon be in place to drive a recovery. The decision to suspend the dividend will no doubt see some investors look elsewhere, but despite COVID uncertainties, Atlantic believes Rolls Royce has the tools at its disposal to engineer a decent recovery in the share price by December 2020. We recommend buying the shares on the current weakness.
To take advantage of this trading idea, speak to a member of our dealing team on 01872 229000 or visit the Atlantic Capital Markets website here