Engine firm Rolls-Royce in worst-ever loss
Engine maker Rolls-Royce has reported its largest ever loss and one of the biggest in UK corporate history after being hit by the pound's plunge and a corruption scandal.
The blue chip giant slumped into the red with a pre-tax loss of £4.64bn for 2016 after a £4.4bn writedown caused by the collapse of the pound since the Brexit vote, as well as a £671m penalty to settle bribery allegations.
On an underlying basis, it reported pre-tax profits of £813m - nearly half the £1.4bn recorded in 2015.
Rolls said it was on track with efforts to slash costs and is expecting a "modest" performance improvement in 2017.
But chief executive Warren East warned that there was still much to be done in turning the troubled business around. He said: "2017 remains a challenging year and we have lots of operational improvements to do."
Shares in the FTSE 100 heavyweight fell 3% after the scale of its losses was revealed.
However, its underlying performance was better than most analysts had expected.
The huge annual loss follows a tough past two years for Rolls-Royce after a string of profit warnings.