Engineering giant Rolls-Royce has said its financial performance is “improving” as it pushes forward with its transformation plan.

The aircraft engine manufacturer said trading has been in line with expectations over the four months to April as it continues to benefit from growth in its key markets.

The group cut thousands of jobs following the heavy impact of the pandemic and launched a transformation programme to reduce costs and create efficiencies in a bid to improve profits.

Rolls-Royce told shareholders ahead of its annual general meeting on Thursday that the strategy is “moving at pace”.

It said it has been “encouraged” by early progress and expects further positive results as the year goes on.

The company said it has also been undertaking a strategic review and will reveal the finding in the second half of 2023.

It came as Rolls-Royce held firm on its profit guidance for 2023.

The company said it has seen a continued improvement in flying hours by engines from its civil aerospace operation, reaching 83% of 2019 levels over the first four months of 2023, in line with expectations.

Tufan Erginbilgic, chief executive of Rolls-Royce, said: “We are transforming Rolls-Royce into a high quality and competitive business with a strong balance sheet and growing profit, cash flows and returns.

“We are already benefiting from the actions we are taking as well as recovery and growth in our end markets.

“We announced several changes to the executive team in March to support the transformation, adding leaders with proven track records of delivery and high-performance.

“We are making good progress and our financial performance year-to-date is in line with expectations.”