Rolls-Royce boss pushes for UK taxpayer support for new jet engine
The chief executive of Rolls-Royce has pressed ministers for taxpayer support for a new jet engine, on a day the company also announced record profits and promised to give up to £9bn back to shareholders,The £3bn engine project, designed to power smaller commercial planes, would allow Rolls-Royce to re-enter the lucrative short-haul flights market,Tufan Erginbilgiç said on Thursday: “Not supporting it would be a sort of strange thing to do,” given Labour had named advanced manufacturing as a priority in its industrial strategy, released last summer,Rolls-Royce has already spent more than £1bn on the project, while it has reportedly asked the UK government to initially provide between £100m and £200m to develop and test the UltraFan 30 engine,Erginbilgiç said: “There are all sorts of numbers out there.
Whatever they support, we will appreciate that, but it is going to be a fraction of what we are spending … in this programme,”Pressed on whether the support was necessary amid vast profit and shareholder payouts, he claimed international rivals received “two or three times” the state support Rolls-Royce was asking for,“We are in a competitive world; therefore, you need to think about that,” he said,The engine would mark Rolls-Royce’s return to the market for smaller jets that it abandoned in 2013,Narrow-body planes – the kind used on everyday short-haul routes – make up the vast majority of commercial aircraft flying today.
Rolls-Royce’s profits soared by 40% last year as the engineering company’s turnaround gathered pace, helped by booming demand for power from datacentres.The company reported underlying profits of £3.5bn for 2025, up from £2.5bn the year before, as it also promised to give up to £9bn to shareholders over the next three years through share buybacks, its biggest return of cash to investors in a decade.Erginbilgiç, a former BP executive, has transformed the engine maker’s fortunes since taking over in January 2023, when he told staff the company was standing on a “burning platform”.
Since then profit has soared as he cut costs, renegotiated lossmaking contracts and pushed through better commercial terms with airline customers.The strong results posted on Thursday were driven in part by an increase in demand for power from datacentres, as technology companies race to build infrastructure to support artificial intelligence.Profits at Rolls-Royce’s power systems division, which makes generators for the sites, jumped 60% to £852m last year.The bulk of the company’s profits still come from its civil aerospace business, however, where there was strong demand for its commercial jet engines.It also makes money every time one of its engines is in the air.
Rolls-Royce serviced more engines last year, it said, and benefited from better contract terms, with a 41% jump in profits from the division to £2.1bn.It also had to navigate the turbulence caused by Donald Trump’s tariff war in 2025, although the company was eventually exempted for its engines, which power Boeing’s 787 passenger jet, as part of a US-UK trade deal struck in May.Erginbilgiç said Rolls-Royce’s turnaround “continues with pace and intensity.We are consistently achieving outcomes that were not possible before our transformation.
”The company raised its forecast significantly, now expecting an operating profit of between £4.9bn and £5.2bn by 2028 – about a third more than it had previously targeted.Rolls-Royce said it would return £2.5bn to shareholders this year alone, as part of the longer-term buyback plan.
The company only completed its first buyback in a decade last year, returning £1bn to investors.Last June, Rolls-Royce was chosen to build the UK’s first small nuclear reactors at Wylfa in north Wales, backed by £2.5bn of government funding.The company said it was confident the business would be making money within five years.Rolls-Royce shares rose almost 7% on Thursday morning, helping to push the FTSE 100 to a record high of 10,825 points, up 18 points, or 0.
15%.
WPP to sell assets and cut jobs in radical shake-up to counter AI threat
The beleaguered UK advertising group WPP has announced a radical restructure to counter the threat posed by the growth of artificial intelligence, including plans to sell assets and job cuts.Aiming to be “a simpler, lower-cost, AI-enabled business”, the London-based company laid out plans to achieve £500m of annual savings by 2028, at a cost of £400m over two years.Cindy Rose, the chief executive who took over last summer, said the company was “unveiling a bold plan for a simpler, more integrated WPP that’s fit for the future and built to win”. It has struggled to stem a growing exodus of clients and is racing to match the AI and data capabilities of rivals, amid fears that AI will allow customers to bring more marketing functions in-house.Rose said WPP had identified several assets that it wanted to shed, without naming them
Ocado to cut 1,000 jobs in £150m cost-saving drive
Ocado is to cut 1,000 jobs as the retail technology business attempts to slash £150m in costs though a substantial restructuring programme.The company confirmed that about 5% of its global workforce will be affected. About two-thirds of the jobs are expected to go from the UK, where the company is based in Hatfield, Hertfordshire. About half the jobs going are in technology, with the rest made up of support staff.The business, which provides technology for robotic warehouses for supermarket chains, said it plans to scale back research and development, helping it cut about £150m in technology and support costs in 2026
Qantas unveils major changes to frequent flyer program and a bumper $1.46bn profit
Qantas is overhauling its frequent flyer program to entice members to climb its vaunted membership tiers, in changes designed to prevent customers from switching to rival schemes.The reforms, described by the airline as the “biggest changes to status in program history”, have been unveiled during a hugely profitable period for Qantas, with revenue rising across its domestic, international and loyalty scheme businesses.On Thursday, Qantas announced planned changes to the loyalty scheme to allow members to roll over some of their status credits - the currency used to determine membership tiers - helping people reach or maintain high levels such as gold and platinum.This differs from the previous system of unused credits resetting to zero at the end of a holder’s membership year.However, the amount of credits needed to keep status levels is increasing, according to analysis from comparison site Finder
Lawyers for US cancer sufferers challenge Bayer’s $7.25bn Roundup settlement deal
A group of 14 law firms representing nearly 20,000 plaintiffs is seeking to intervene in Bayer’s proposed class-action settlement of Roundup litigation, citing concerns that the deal will not be fair to cancer sufferers.The group filed both a motion to intervene and a motion for an extension of time for court preliminary approval of the deal in St Louis city circuit court in Missouri late on 24 February.The law firms say the deal appears “unprecedented” and raises multiple “red flags”.“It is hard to escape the impression that the proposed settlement would give Monsanto everything it desires – a near-complete release of liability for Monsanto and its parent company, Bayer AG – while giving inadequate consideration to many putative class members, who would surrender their substantive rights in exchange for settlement offers that may never result in payment,” the law firms state in their motion.Bayer and a different group of plaintiffs’ lawyers filed the settlement proposal with the court on 17 February, with a provision to seek preliminary court approval within a 15-day period
Public health advocates say more transparency needed in debate over illicit tobacco as industry links questioned
A former Australian Border Force officer who has positioned himself before government inquiries as Australia’s “foremost law enforcement expert” on illicit tobacco also advises nicotine industry-linked organisations – leading public health advocates to argue that more transparency is needed.Rohan Pike, who spent more than two decades in law enforcement and now runs a consultancy, has become a prominent media commentator on the illicit tobacco trade, promoting policies that align with those supported by the tobacco industry.Those positions include opposing further excise increases on cigarettes and pushing for the legalisation of nicotine pouches.In May he was appointed as an illicit-trade adviser to the Global Institute for Novel Nicotine Products (Ginn), a UK-based trade association representing manufacturers of alternative nicotine products, including pouches and “heat not burn” nicotine products. Pike said he does not receive funding or payment from Ginn
France’s Engie strikes deal to buy UK Power Networks for £10.5bn
A French utility has agreed to buy the owner of the electricity cables and power lines across London, the south-east and the east of England in a deal worth £10.5bn.Paris-headquartered Engie said on Wednesday that it had struck a deal to buy UK Power Networks (UKPN) in a “major milestone” for the company’s ambition to become the “best energy transition utility”.Engie will buy the electricity network operator, which operates about 192,000km of power lines serving 8.5 million customers across London and southern and eastern England, from a Hong Kong-based conglomerate founded by billionaire business magnate Li Ka-shing, which has owned UKPN for the past 15 years
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