Rolls Royce In Major Financial Trouble.

[Janus]

There is speculation that RR 'could' be broken up. They are already trying to offload their Marine facilities. 

 

Some of their engine maintenence contracts that have formerly been lucrative, have not made them a profit. They have actually cost them money. This was due to a run on faults.

 

The government has bailed RR out a few years ago. 

Edited October 5, 2020 by Janus

[Mossway]

I’m no Ace investor, but I had 332 RR shares in my SIPP and RR had, pre Covid, a big problem with the Trent 1000 engine. I baled out in Aug 2019 and sold at £7-67. per share.  If I’d held on to them they would be worth a total of c £405 today. I wouldn’t touch them now.

[Anna B]

On 03/10/2020 at 21:40, Janus said:

What a mess eh?

 

There must be a massive hole in the revenue that the government is receiving now from income tax & vat.

 

Big businesses going bust  may well have an effect on private and workplace pensions. What next? A reduced state pension  and also unemployment benefits? 

They are barely enough to live on as it is. Amongst the smallest in Europe. I don't see how they can be reduced any more.

[tinfoilhat]

11 minutes ago, Anna B said:

They are barely enough to live on as it is. Amongst the smallest in Europe. I don't see how they can be reduced any more.

Just you watch!

[Anna B]

1 hour ago, tinfoilhat said:

Just you watch!

Yes you may well be right. So after years of austerity when the poorest suffered mightily, they are about to get clobbered yet again.

[nightrider]

11 hours ago, Anna B said:

They are barely enough to live on as it is. Amongst the smallest in Europe. I don't see how they can be reduced any more.

It's not barely enough. No-one can live on £90 a week. Most (all?) peoples rent will be more than £360 a month, as would their mortgage. Then they have to pay council tax and bills on top.

[Janus]

19 hours ago, Mossway said:

I’m no Ace investor, but I had 332 RR shares in my SIPP and RR had, pre Covid, a big problem with the Trent 1000 engine. I baled out in Aug 2019 and sold at £7-67. per share.  If I’d held on to them they would be worth a total of c £405 today. I wouldn’t touch them now.

When RR initiates the 'rights issue' that is planned, all their shares are diluted and are then worth even less.

[andyofborg]

13 hours ago, Anna B said:

They are barely enough to live on as it is. Amongst the smallest in Europe. I don't see how they can be reduced any more.

I doubt it will be reduced, it just wont be increased by as much as it might have been otherwise

[tzijlstra]

12 hours ago, Anna B said:

Yes you may well be right. So after years of austerity when the poorest suffered mightily, they are about to get clobbered yet again.

The swing in votes to Tories mostly came from those same poorest voting them in due to Brexit.

 

Play with fire, get burned.

[ECCOnoob]

3 hours ago, nightrider said:

It's not barely enough. No-one can live on £90 a week. Most (all?) peoples rent will be more than £360 a month, as would their mortgage. Then they have to pay council tax and bills on top.

Where you getting £90 a week from?   Basic state pension for a full contribution is over £175 a week.  On top of that, for those who need further support there are still potential discounts on council tax, heating allowances, housing support and pension credits. 

 

Of course for those who didn't pay in full get a lesser amount but that was only to be expected and should be planned for. 

 

Edited October 6, 2020 by ECCOnoob