Rolls-Royce posts full year 2016 net loss of £4.03bn

Rolls-Royce reported a net loss of £4.03bn (US$5.02bn) for the full year 2016. The pre-tax loss was £4.6bn, with underlying profit of £813m, down from 2015’s £1.43bn. The company reported revenue for 2016 of £14.96bn, up 9% from £13.72bn the previous year. In January 2017 Rolls-Royce had entered into Deferred Prosecution Agreements (DPAs) with the UK’s Serious Fraud Office (SFO) and the US Department of Justice (DoJ) and completed a Leniency Agreement with Brazil’s Ministério Público Federal (MPF). These agreements relate to bribery and corruption involving intermediaries in a number of overseas markets. The agreements will result in the total payment of around £671m, payable under a schedule lasting up to five years. The post-Brexit drop in the pound led to a £4.4bn hedging charge for the year.