Aero engine manufacturers Rolls-Royce's shares have put on 14 per cent despite a 50 per cent dividend cut and profits bumping along at at the low end of forecasts.
The chief executive promises further cost cuts on top of some £200m savings already planned.
Share prices were helped by prospects of further management changes and a block on issuing more shares, possibly by a new rights issue which would dilute any future dividend.
Rolls-Royce employs over 21,000 people in the UK, 12,000 employed at its Derby aerospace engines and submarines division, plus more than 3,000 in Bristol.
Last year, the firm launched a programme of 3,600 job cuts and warned that some of its 2,000 senior managers would depart.
In effect, the two top layers of management cut by 20% and further cuts are planned. The initial exceptional restructuring charge for these changes would be in the region of £75m-100m this year.
Chief executive Warren East, who joined in July, claimed an "accounting fog" had developed leaving investors unclear about its future direction.
Mr East explained: "In the context of challenging trading conditions, our overall performance for the year was in line with the expectations we set out in July 2015.
"It was a year of considerable change for Rolls-Royce: in our management, in some market conditions and in our near-term outlook."
He added that there were some positive notes, including the underlying growth of long-term markets and a growing order book.
Elsewhere, the firm is the subject of an investigation by the Serious Fraud Office.
Rolls said it was continuing to co-operate with the authorities in the UK, the US and elsewhere, but was unable to give any further details or a timescale for when the investigation would end.
Sources: RNS, BBC, FT. CNS
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