Invested in Rolls-Royce shares at 99p in January 2023 is now worth...

Rolls-Royce shares are described as delivering one of the biggest turnarounds in the FTSE 100 history. When CEO Tufan Erginbilgiç took charge in January 2023, the stock traded at 99p; 43 months later it is around 1,500p. The article claims this would have turned a £3,000 investment into roughly £45,000 if an investor held every share. The author argues that the lesson from Rolls-Royce is how a capable management team can make a major difference when the company has the right ingredients for recovery, such as an established engine base and high barriers to entry in aerospace. Instead of only cost cutting, Erginbilgiç focused on transformation and resilience beyond shocks like another pandemic. A key metric is the TCC/GM ratio (total cash cost to gross margin), which the author says management drove from 0.9 in 2019 to 0.4 as a target. By the end of June, the ratio reportedly reached 0.27. The article also notes the company’s response to potential alienation after “burning platform” comments on arrival.