Product Reviews

If I'd invested ?10k in Rolls-Royce shares in an ISA six months ago …

Rolls-Royce (LSE: RR) shares have given investors a bumpy ride for years, crashing from 436p in January 2014 to just 98p at the start of 2023. That’s a staggering drop of 77.5%. The FTSE 100‘s aircraft engine maker’s troubles began in February 2014 when years of steady growth came to an abrupt end with a shock profit warning.

Four more warnings followed over the next 18 months.

One disaster after another

Rolls-Royce’s reputation was besmirched by revelations that executives had paid massive bribes to win export contracts, with the shady practice continuing right up to 2013. It was forced to hand over GBP671m to avoid prosecution by anti-corruption investigators in the UK, US and Brazil. Adding to its misery, its defence division was hit by government spending cuts, while its Trent 1000 engines, which go in Airbus 330 aircraft, suffered a string of technical problems.

Then Covid struck. The company generates most of its revenues from its aircraft engine maintenance contracts, which are based on miles flown. When airline fleets were grounded by pandemic restrictions, revenues plummeted.

I finally bought Rolls-Royce on 1 November last year, on the principle that things could only get better. And so they did, a lot faster than I expected. My holding is up 77.5%.

The stock closed yesterday at 145.42p. Somebody who bought Rolls-Royce exactly six months ago would be sitting on a 116% gain, turning GBP10,000 into a thumping GBP21,600. That’s purely from share price growth as there’s no dividend at the moment.

It would be all tax-free if they had invested inside their ISA allowance. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only.

It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions. Rolls-Royce shares have weathered recent FTSE 100 turbulence pretty well, rising 8.45% over the last month.

So would I buy more today?

More turbulence ahead

In January, new CEO Tufan Erginbilgic shocked investors and staff by labelling his charge a “burning platform”, adding that “this is our last chance”. JP Morgan had previously warned he might take this approach, but assumed it would damage the share price. Instead, Erginbilgic’s rough words gave it a boost.

Now we wait to see if he can match them with action. Today, analysts are a lot more bullish about Rolls-Royce shares. Citi recently lifted its price target to 255p, saying it could see “a clear route to much better cash flow”.

This included more than GBP1bn from non-systemic elements dropping out. S&P said the company’s debt might win back its investment grade rating over the next 12-18 months. Much still depends on Erginbilgic’s turnaround plan.

A global recession is a concern, as this would probably hit flying hours and revenues. Another worry is that net company debt is still high, at £7.21bn, although that’s down from £10.49bn at the end of 2021. I’m not banking my gains.

Typically, I buy shares with a minimum 10-year view. I’m holding on for the happy day when the dividend resumes. After the recent surge, I won’t push my luck by increasing my stake today.

It’s flown high in a short space of time.

No, I’m hunting through the FTSE 100 for other ISA bargains.

And there are plenty around.

Tags: AT It is Match

compare-the-market listed on couponmatrix.uk

hertz-car-hire listed on couponmatrix.uk

When it comes to selecting a new services provider, these days, there’s simply too much choice to check every provider, site, and offer out there! Thankfully, Compare the Market are here to help by checking the prices of over 390 providers to get you the best deal. With a Compare the Market discount code, you can get a great plan for even less. When Compare the Market is cheaper than going direct almost 88.33% of the time, you can be sure of a great deal!

If music is food for the soul, then Gear4Music is an all-you-can-eat buffet. As specialists in supplying instruments from every walk of the musical world, Gear4Music offer an unparalleled inventory of electric, acoustic and classical instruments at unbeatable prices. Thrifty shoppers should keep a Gear4Music discount code close whenever they need to upgrade their setup, as they can expect to save double digits on an array of top quality amps, soundboards, DJ decks and microphones.

Open up to a world of savings with one of Groupon's Handles4Doors discount codes. You'll gain discounted access to a top supplier of architectural ironmongery which stocks door handles, locks, hinges and knobs to both trade and domestic customers. Their online shop is home to thousands of door fixtures and fittings in a wealth of styles, finishes and designs from top brands - all with a focus on quality, style and performance. Browse the selection and pick up an item for less with one of our Handles4Doors promo codes. The family-run Handles4doors started off life in a small, rustic warehouse in the Farnham countryside, but their success in recent years has taken them to a larger professional warehouse in Fleet. Their team pride themselves on product knowledge and quality service and are always happy to help. With over 50 years industry experience between them, their sales and technical team can give reliable, up-to-date advice and recommendations, or customers can visit the Handles4 Doors showroom for hands-on advice. Handles4Doors caters for both small home improvement projects and commercial projects on a large scale, and through their huge network of suppliers and contacts are able to source specific products and information that might not be available on the site. Since the launch of their first online shop in July 2007 Handles4Doors has gone from strength to strength, and they currently work with some of the leading manufacturers in the ironmongery and homeware industry including Urfic Door Handles, Hafele, Hettich, Pro Décor, Carlisle Brass, Kirkpatrick and Fortessa. So no matter whether you're after contemporary, traditional, rustic or classic style handles, check out Groupon's Handles4Doors voucher codes and kit yourself out in no time.

Hertz are one of the largest vehicle hire companies in the world with 8300 locations in 150 countries worldwide, including in Europe, North America, Latin America, Australia and New Zealand. They handle more than 30 million car reservations a year, combining high quality rental cars with top quality customer service. Regularly offering customers Hertz discount codes to keep prices low and demand high, there's no reason not to pick Hertz Car Hire as the first and final stop for all your automotive needs.

Effortlessly elegant and timelessly trendy, Nkuku are experts in creating immaculate furnishings that brings an air of simplistic beauty to any home. Be it a marble dining table for your family banquets or brass candlesticks for those romantic nights in with your favourite person, a Nkuku discount code is all you’ll need to set the mood for a fraction of the price. Bolstered by a beautiful array of light fixtures, kitchenware and storage solutions, there’s no reason not to add the Nkuku charm into every element of your home.

SDS London is a luxury fashion brand that offers voucher codes for its customers. The brand was established in 2013 by Sarah-Jane Darlington, who has worked as a fashion designer for over 10 years. The brand offers free shipping on orders over £100, and customers can enjoy discounts of up to 50% off with SDS London voucher codes. Sarah-Jane's designs are known for their elegance and sophistication, and the brand has been featured in Vogue, Elle, and Harper's Bazaar. SDS London's collections include apparel, accessories, and home decor. At Groupon, we believe that everyone deserves to enjoy the luxury of SDS London fixtures at a fraction of the cost. That's why we work hard to find discount codes and vouchers for our customers to use. We want you to be able to shop for your favourite SDS London fittings without breaking the bank, and we'll continue to update our selection of codes so that you can always save on your purchases. Thanks for choosing Groupon! SDS London's Pendant Light selection is a top-performing product that is sure to add a touch of luxury to your home. The light combines a sleek design with a matte finish for that timeless touch. Make the most of the latest SDS London discount code and enjoy this luxury lighting for less. This fixture is the perfect addition to any room, and it will instantly elevate your space, so make the smart choice and opt to illuminate with SDS London!