Rolls-Royce secures 2,000 jobs and boosts order book

R-R said the contract, worth around £800 million, provided the long-term commitment required to deliver a step change in operational efficiency, enabling cost savings in the provision of nuclear propulsion systems for the UK's existing and future submarine flotilla. The 2010 Strategic Defence and Security Review led to a commitment by the industry, including Rolls-Royce, to deliver cost savings of more than £900million over a 10-year period by the creation of a Submarines Enterprise Performance Programme (SEPP). Among the highlights of Rolls' annual results were a reported 4% hike in the company's order book to just over £60bn, sales of £12.2bn, up 8%, and a 24% increase in pre-tax profit to £1.4bn. Chief executive John Rishton said: "The strength of our order book demonstrates the confidence our customers have in our products and services. Our priorities remain: delivering on the promises we have made; deciding where to grow and where not to; and improving financial performance. "In 2013, we expect modest growth in underlying revenue and good growth in underlying profit with cash flow around break even as we continue to invest for the future." The company also announced the appointment of a new chairman, former boss at the management consultancy McKinsey and BP director Ian Davis, who will succeed Sir Simon Robertson who is retiring.