RS Group interim revenues decline

RS Group said interim revenues had dropped 8% on a like-for-like basis to £144.0bn, while adjusted operating profits were down 21% at £156.0m. Adjusted earnings per share tumbled 32% on a LFL basis at 22.3p.

The FTSE 100-listed group's adjusted operating margin was down 2.6 basis points at 10.8%, adjusted free can flow slumped 77% to £26.0m and the group swung from net cash of £3.0m on 30 September 2023 to a net debt position of £502.0m a year later.

However, RS Group still chose to hike its interim dividend by 15% to 8.3p as it said it delivered "a resilient performance in difficult markets".

Chief executive Simon Pryce said: "Industrial revenue has been robust despite the challenging macro and geopolitical environment but cyclical weakness in electronics has been exasperated by customer de-stocking.

"Whilst markets remain difficult in the short term, the medium and longer-term growth characteristics are attractive. We are managing our costs more appropriately whilst continuing to invest in key strategic accelerators."

As of 0900 GMT, RS shares were down 4.69% at 650.0p.

Reporting by Iain Gilbert at Sharecast.com