12th Feb 2016 15:38
LONDON (Alliance News) - Rolls-Royce Holdings PLC said Chief Financial Officer David Smith bought shares as the power systems developer cut its dividend for the first time in 24 years after reporting a drop in profit and free cash flow Friday.
Smith bought 8,333 shares at a price of 600 pence per share on Friday, and now holds 28,921 shares.
Chief Executive Warren East, who started work as chief executive in July, put to rest market fears of a sixth profit warning in two years, reiterating guidance for 2016. The sent shares in the blue-chip company up 15% to 609.00 pence on Friday, though still down by about half since the first of five profit warning in February 2014.
The full-year dividend was slashed to 16.37 pence from 23.10p, slightly ahead of the 16.20p expected by analysts. East said the dividend paid for the first half of the new year will be halved, as underlying free cash flow fell to GBP179 million from GBP447 million.
By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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