RS Group executes well in H1 despite 'more challenging than anticipated' market

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Sharecast News | 07 Nov, 2024

13:20 07/11/24

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Industrial and electrical products distributor RS Group said on Thursday that it had "executed well" during H1 despite a "more challenging than anticipated" market environment.

RS Group said interim adjusted operating profits were down 14% year-on-year at £134.0m, while adjusted pre-tax profits were down 17% at £119.0m. Adjusted operating profit margins slipped 1.5 basis points to 9.3%.

The FTSE 250-listed group also highlighted that adjusted free cash flow had surged 246% to £89.0m, net cash from operations had grown 57% to £163.0m and net debt had improved from £502.0m to £437.0m.

Group revenue was broadly unchanged, with a 3% benefit from acquisitions offsetting a 3% like-for-like decline.

RS added that while it was not anticipating "any material market improvement" for the remainder of FY24-25, it was "reacting effectively" to market conditions, exercising strong operational discipline, gaining share and bringing forward its cost efficiency and integration plans.

"As a result, whilst short-term trading visibility remains limited, we will continue to flex the cost base appropriately and expect the outcome for the full year 2024/25 to be in line with current market expectations," said RS.

As of 0855 GMT, RS Group shares were up 8.07% at 736.50p.

Reporting by Iain Gilbert at Sharecast.com

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