Rolls-Royce suffers £186m hit from Airbus decision to scrap the A380. Rolls-Royce Holdings (RR.) was hit by a catalogue of engine problems on Thursday including an £186 million blow from Airbus ditching the A380 which helped push it into the red. The FTSE-100 engineering colossus, led by Warren East, said Airbus’ shock decision to end production early would force a major write-off of costs associated with manufacturing the Trent 900 engines which power the planes. Airbus stunned the aviation world earlier this month when it axed the A380 jumbo programme after only 12 years following a decision by its largest customer Emirates to scale back orders in favour of smaller planes. Rolls-Royce still has to supply 17 new A380s with Trent 900 engines over the next three years but the end of the programme will cost the business £186 million as it winds down production lines earlier than expected.
Telford Homes issues shock profit warning. London housebuilder Telford Homes (TEF) shook investors on Thursday as it slashed its profit outlook after project delays and a switch towards less lucrative build-to-rent schemes. Shares tumbled 59.9p to 291.3p — more than 17% — as the City dumped the shares. Telford admitted to a six-month delay at its City North scheme at Finsbury Park, where it has hit hold-ups “due to matters outside our control”. The firm is trying to coincide works with the building of a new entrance to Finsbury Park station but the six-month delay will mean £15 million in profits being booked in next year’s results. Telford has also seen “frustrating challenges” getting planning permission on a scheme in Bethnal Green.
