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| Version 1 | Version 2 |
|---|---|
| Neil Woodford sells Rolls-Royce stake | Neil Woodford sells Rolls-Royce stake |
| (about 7 hours later) | |
| Star fund manager Neil Woodford has sold his stake in the engineering firm Rolls-Royce, saying he has lost his confidence in the business model. | Star fund manager Neil Woodford has sold his stake in the engineering firm Rolls-Royce, saying he has lost his confidence in the business model. |
| In a blog, Mr Woodford said that November's disappointing trading statement had prompted the move. | In a blog, Mr Woodford said that November's disappointing trading statement had prompted the move. |
| He did not disclose the size of the stake but reports suggest that it was worth 2.2% of the company, or £232m. | He did not disclose the size of the stake but reports suggest that it was worth 2.2% of the company, or £232m. |
| Rolls, which has issued five profit warnings in two years, said action was being taken improve the business. | Rolls, which has issued five profit warnings in two years, said action was being taken improve the business. |
| The new chief executive, Warren East, has said he will reorganise the company to "simplify the organisation, streamline senior management, reduce fixed costs" and speed up decisions. | The new chief executive, Warren East, has said he will reorganise the company to "simplify the organisation, streamline senior management, reduce fixed costs" and speed up decisions. |
| Mr Woodford, who has held Rolls-Royce shares for almost 10 years, said the downgrades to profit and cash expectations, and a likely dividend cut in 2016, had shaken his confidence in the investment case. | Mr Woodford, who has held Rolls-Royce shares for almost 10 years, said the downgrades to profit and cash expectations, and a likely dividend cut in 2016, had shaken his confidence in the investment case. |
| He said that problems that initially affected the military aerospace and marine business had spread to the main civil aerospace division. | He said that problems that initially affected the military aerospace and marine business had spread to the main civil aerospace division. |
| 'Headwinds' | 'Headwinds' |
| However, Mr Woodford, considered one of the UK's best-performing fund managers, said he would stay in close contact with the company "in order that we can monitor progress under the new leadership team which we rate highly". | |
| A Rolls-Royce spokesperson said the company did not comment on individual analyst or investor opinions, but went on to say that "[chief executive] Warren East has made very clear his confidence in Rolls-Royce as a great business with significant growth potential". | A Rolls-Royce spokesperson said the company did not comment on individual analyst or investor opinions, but went on to say that "[chief executive] Warren East has made very clear his confidence in Rolls-Royce as a great business with significant growth potential". |
| "We are strongly positioned in attractive markets, with a record order book and are on course to increase our share of the global installed base of widebody aircraft to over 50%," the statement said. | "We are strongly positioned in attractive markets, with a record order book and are on course to increase our share of the global installed base of widebody aircraft to over 50%," the statement said. |
| "We are also undergoing a process of industrial transformation which will make us a stronger business in the long-term. | "We are also undergoing a process of industrial transformation which will make us a stronger business in the long-term. |
| "While we are suffering the impact of short-term headwinds in several of our markets, action is being taken to make the business more resilient and sustainable through our ongoing wide-ranging restructuring." | "While we are suffering the impact of short-term headwinds in several of our markets, action is being taken to make the business more resilient and sustainable through our ongoing wide-ranging restructuring." |