Insider Media Limited

Derby-headquartered Rolls-Royce has pledged to invest in future growth in 2012 after reporting record profit, revenue and order book results.

Underlying pre-tax profit soared by more than a fifth (21 per cent) to £1.15bn in 2011.

The manufacturing giant also reported record underlying revenue of £11.3bn, up 4 per cent, in its year-end results which were released this morning.

Chief executive John Rishton said that the company now expects "good growth" in both underlying revenue and profit in 2012, with cashflow around breakeven as investment into future growth is pushed forward.

Rolls-Royce's order book was at peak levels at 31 December 2011, showing £62.2bn of forward orders, a rise of 5 per cent on its 2010 year end.

A final payment to shareholders was made in the final half of 10.6 pence per share, bringing the full year payment to 17.5 pence per share.

"Rolls-Royce performed well in 2011, and at the year end had a record order book, record underlying revenue and record underlying profit," said Rishton.

"We continue to benefit from a broad portfolio, a large and growing customer base and access to markets where demand remains strong for our products and services."

He added that Rolls-Royce now looked forward to opportunities which would arise over the next year, in particular with its May joint venture purchase of Tognum.

The deal "adds significantly to the breadth of our portfolio and will accelerate growth", said Rishton.

The multimillion-pound 50:50 joint venture between Daimler AG and Rolls-Royce finalised the purchase of Germany-based Tognum for €26 per share.