Woodford holding Rolls Royce falls 20% on profits warning

Company forecasts £650m 'headwinds' in 2016

Shares in Rolls Royce, held by Neil Woodford, have fallen 20% in morning trading, after the firm issued a profits warning for 2016.

The aerospace group said its profits next year will be hit by "headwinds" amounting to £650m resulting from "sharply weaker demand". Lower demand has particularly hit such areas of the business as "selected aerospace and offshore marine markets," the group said in its latest results. The stock fell 20.5% by mid-morning following the results, to trade at 530p. Rolls Royce is held by the most prominent investor in UK equities, Neil Woodford (pictured), who has a 2.2% holding in his £7.7bn Woodford Equity Income fund and a 0.8% position in the £832m Patient Capital trust, and has been...