Rolls-Royce (RR.L)

Shares in Rolls-Royce hit a four-year high after the UK engineering company set out new targets for operating profit.

The company now has a medium-term target to deliver operating profits between ￡2.5bn ($3.16bn) and ￡2.8bn. It is also aiming for free cash flow of ￡2.8bn to ￡3.1bn, with a return on capital between 16% and 18%.

Chief executive Tufan Erginbilgic, who took over in January, said: “We are creating a high performing, competitive, resilient and growing Rolls-Royce that will have the financial strength to control and shape its own destiny.

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“We are confident in our ability to achieve these ambitions and have a clear and granular plan to deliver on our targets.”

The firm is targeting a leap in its civil aerospace margin to 15% to 17%, up from 2.5% last year.

It also plans to sell between ￡1bn and ￡1.5bn of assets over the next five years, including its electric plane arm.

Novartis (NVS)

Swiss pharmaceutical company Novartis lifted its sales growth guidance to 5% per year until 2027 after what it called "progress" in delivering its pure-play strategy.

The company said the new medium-term target would be driven by six drugs, led by breast cancer drug Kisqali.

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“Novartis has now completed its transformation into a ‘pure-play’ innovative medicines company, delivering robust increases in core margin and free cash flow, while also continuing strong operational performance,” chief executive Vas Narasimhan said.

Novartis reiterated a core operating income margin of at least 40% by 2027, up from 35% last year.

EasyJet (EZJ.L)

Budget airline easyJet revealed it swung to an annual profit after a record summer.

The group reported pre-tax profits of ￡432m for the year to 30 September, against losses of ￡208m the previous year, seeing the group announce its first dividend payout to shareholders since the pandemic.

Underlying, or headline, profits stood at ￡455m against a ￡178m loss in 2021-22.

The company, which hasn't paid a dividend in three years, declared a final payout of 4.5p per share, amounting to ￡34m.

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Chief executive Johan Lundgren said: “Our record summer performance demonstrates the success of our strategy and that demand for easyJet remains strong as customers choose us for our network and value.

“We see a positive outlook for this year with airline and holidays bookings both ahead year on year and recent consumer research highlights that around three-quarters of Britons plan to spend more on their holidays versus last year with travel continuing to be the top priority for household discretionary spending.”