RS Group sees FY revenues, profit 'slightly above' expectations

RS Group said on Thursday that full-year revenues and profit were set to be "slightly above" current consensus estimates following a strong first quarter.

Consensus expectations for the year ending 31 March 2023 are for revenue of £2.74bn, within a range of £2.63bn and £2.82bn and adjusted pre-tax profit of £345.3m, within a range of £328.4m to £359.4m.

In an update for the quarter to 30 June, the distributor of industrial and electronic products said group like-for-like revenues rose 18% despite "significantly tougher" comparatives. The company’s industrial product ranges, which make up around 73% of group revenue, saw LFL revenues grow by 21%.

Chief executive Lindsley Ruth said: "Our revenue performance remains strong. The group's differentiated proposition continues to resonate with customers due to our industry-leading product availability, ease of ordering and customer service.

"While we remain alert to a difficult macroeconomic environment and increasing inflationary pressures, we have an improved pricing model, strong cost controls, tight inventory commitments and profitable growth initiatives as detailed within our Journey to Greatness.

"Given our strength in the first quarter, we now expect our full year revenue and profit to be slightly ahead of current consensus estimates."

At 0930 BST, the shares were up 3.3% at 888.00p.