Rolls soared 21.6% to 130.89 pence, placing it way out in front on London’s top tier FTSE 100 index, which was down 0.4% overall.

Traders looked past a hefty net loss for last year on an accounting charge linked to foreign exchange valuations.

“Our transformation programme will improve our efficiency and commercial outcomes, and deliver a sustainable reduction in working capital,” Erginbilgic said in the earnings statement.

“Our success will enable us to reward investors for their support and invest in future growth,” added Erginbilgic, who replaced long-serving Rolls CEO Warren East at the start of the year.

The company posted a net loss of almost £1.3 billion last year.

It had recorded profit after tax of £120 million in 2021.

Also in 2022, operating profit leapt 63% to £837 million as revenue soared more than a fifth to £13.5 billion on rising orders.

Rolls added that it would announce the outcome of its strategic review in the second half of 2023.

“For years Rolls-Royce has disappointed on cash flow and it’s no surprise to see this as an area of priority alongside the standard recovery mantra of improving efficiency, reducing debt and improved performance management,” said Russ Mould, investment director at AJ Bell.

“What should give Erginbilgic a fair wind is the improved prospects for the aviation sector.”

Aerospace was slammed by the Covid-19 pandemic which grounded aircraft, slashed travel demand and sparked thousands of job cuts.

However, demand has since recovered sharply after the lifting of lockdowns.

Rolls-Royce today forecast “a steady and ongoing recovery of trading towards pre-pandemic levels”.

Former CEO East decided to step down after a tumultuous eight years at the helm.

Under his tenure, the group axed more than 9,000 jobs and launched a major divestment programme in 2020 to navigate the pandemic fallout.

A dual UK and Turkish national, Erginbilgic recently chose Nicola Grady-Smith – an executive at his former employer BP – to help overhaul the aerospace giant.