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Rolls-Royce upgraded its outlook on cash flow following improved trading performance and cost cuts.
Free cash outflow in fiscal 2021 was expected to be better than previous guidance of £2.0 billion.
By the end of 2021, the company said it expects to have removed more than 8,500 roles, with the pace of restructuring running ahead of its original plan and footprint rationalisation continuing through the second half of the year.
'While external uncertainties clearly remain, we have seen continued gradual recovery in our civil aerospace business, a growing order book in power systems and have secured a significant contract win in defence,' the company said.
In addition, around £300 million of original equipment concession outflows, originally expected in 2021 were now expected to fall in 2022 due to 'delayed delivery of aircraft for which we have already supplied engines,' it added.