Brexit: Rolls Royce and Legal & General response

Following Brexit, Rolls-Royce and Legal & General say no immediate impact on businesses.

Following the recent vote for the UK to leave the EU, reassuring statements have been issued by engine maker Rolls Royce and the insurer Legal and General. The statements stress that there will be no immediate impact on day-to-day business.

Rolls Royce said: “Although this is not the outcome the company would have chosen, Rolls-Royce remains committed to the United Kingdom where we are headquartered, directly employ over 23,000 … workers and where we carry out a significant majority of our research and development.”

Rolls Royce said that the longer-term impact would “depend upon the relationships that are established between the UK, the EU and the rest of the world over the coming years”.

The company added it expects that due to the solid underlying growth in revenues and its ongoing restructuring programme, it will deliver more engines in the second half of the year.

Insurance company Legal & General said they had been planning for the possibility of a vote for the UK to leave, As a result, its balance sheet had “demonstrated its resilience to market volatility”.

Legal & General said long-term trends, such as aging populations and globalisation of asset markets were “substantially unaffected by the EU referendum result”.

It added: “We have not taken any action as a result of the downgrade of UK sovereign debt by Moody’s, Standard & Poor’s and Fitch because we had already treated UK sovereign debt as AA rated in our internal model.”

 

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