Rolls-Royce’s prospects are continuing to improve, making its chief executive’s ambition for it to become the London Stock Exchange’s most valuable company seem less far-fetched. The company has recovered strongly from the aviation downturn during Covid-19 and is now benefiting from demand across civil aerospace, defence and energy infrastructure.

Its £120bn valuation places it roughly joint fourth in the FTSE 100, although it remains behind Shell, AstraZeneca and HSBC. Half-year results raised expected annual cash flow to £3.8bn–£4bn and operating profit to £4.7bn–£4.9bn, while demand is growing for its defence systems, datacentre power equipment and potential small modular nuclear reactors. A future return to narrowbody aircraft engines could offer a much larger market, though Airbus and Boeing have not yet committed to new models.