Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Reaction Engines streamlines operations amid cash concerns

EditorNatashya Angelica
Published 10/01/2024, 06:46 pm
© Reuters.

UK - Reaction Engines Ltd., a prominent UK aerospace company known for its pioneering hypersonic engine technology, is implementing cost-cutting measures to avert a potential cash shortfall expected by June. The firm, which is backed by industry giants such as Boeing (NYSE:BA) Co., Rolls-Royce Holdings Plc (LON:RR), and BAE Systems (LON:BAES) Plc, is taking a cautious approach to its finances following a pretax loss of £28.7 million in 2022.

Despite the financial hurdles, Reaction Engines has made significant strides in its revenue, which saw a fourfold increase in 2023 due to lucrative commercial deals. One of the key applications contributing to this growth has been the use of its advanced heat exchange technology in Formula One racing. The company's CEO, Mark Thomas, has confirmed that they are exploring various avenues to reduce spending. This includes postponing the relocation of their headquarters. However, Thomas has not yet revealed any intentions regarding changes to the workforce.

The company has been a standout in the aerospace sector, notably for its development of engines capable of reaching Mach 25 speeds, which are essential for spaceflight. Alongside its financial endeavors, Reaction Engines remains committed to innovation in sustainable aviation and clean energy solutions. The company is also collaborating with Virgin Galactic on the development of space planes, indicating its ongoing dedication to advancing aerospace technology despite the current economic challenges it faces.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.