Rolls-Royce Holdings (LON:RR) could begin stockpiling key parts within months as it braces for a disorderly Brexit, The Times has reported. The comments came with the British engine maker preparing to take ‘costly’ and ‘inconvenient’ steps to shore up inventories of components by the end of the year.
Rolls-Royce’s share price has climbed higher in today’s session, having gained 0.45 percent to 987.20p as of 13:39 BST. The advance is largely in line with gains in the broader UK market, with the benchmark FTSE 100 index currently standing 0.61 percent higher at 7,673.20 points.
Rolls-Royce could start stockpiling
The Times reported today that Rolls-Royce could begin stockpiling key parts within months in preparation for Brexit. The newspaper quoted the group’s chief executive Warren East as commenting that while Prime Minister Theresa May’s strategy was ‘incrementally positive,’ it still leaves ‘loads of unknowns’.
“It’s time to be a bit constructive about negotiating something. And that’s on both sides of the fence,” he continued. “Business, we’ve tried to be pretty good and quiet and not make a big fuss about things, but we just had a conversation about stockpiling. It’s inconvenient. It’s costly.”
His comments came at the Farnborough International Airshow where the group unveiled a propulsion system for a flying taxi, saying that it could take to the skies as soon as early next decade.
Analyst ratings update
As of July 17, 2018, the consensus forecast amongst 20 polled investment analysts covering Rolls-Royce for the Financial Times advises investors to hold their position in the company. The 16 analysts offering 12-month price targets for the British engine maker have a median target of 972.50p on the shares, with a high estimate of 1,279.00p and a low estimate of 675.00p.