RS Group PLC

RS1

Equity

ISIN GB0003096442 / Valor 383075

LSE London Stock Exchange, SETS (2024-12-23)

GBP 6.75-0.66%

RS Group PLC
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About company

RS Group PLC is a leading provider of electronics products and solutions catering to industrial customers, offering a wide range of interconnect, electromechanical, passives, semiconductor, and single board computing technologies. In addition to their electronics offerings, the company also provides personal protective equipment (PPE), workwear, and janitorial products to ensure the safety of their customers and others. With a focus on meeting the needs of their industrial customer base, RS Group PLC is committed to delivering high-quality products and solutions in the electronics and safety sectors.

Summarized from source with an LLMView SourceSector: Non-Energy Materials

Revenue Decline

RS Group PLC reported a 1% decline in revenue for the first half of the 2023/24 fiscal year. This decline was more pronounced on a like-for-like basis, with an 8% drop, reflecting challenging market conditions and strong comparatives from the previous year. Despite this, the company's Digital segment only saw a 5% decline, and there was continued growth in RS PRO and Value Added Services.

Operating Margins

Despite the revenue decline, RS Group PLC maintained double-digit operating margins, achieving an adjusted operating profit margin of 10.8%. This was supported by effective cost management and savings in the underlying cost base, even though lower volumes and dilution from acquisitions posed challenges. The company also highlighted a significant return on capital employed, remaining well above 20%.

Dividend Increase

The Board of RS Group PLC recommended a 15% increase in the interim dividend, reflecting confidence in the Group's long-term growth and cash generation prospects. This decision aligns with the company's through-cycle progressive dividend policy, despite the short-term financial challenges faced during the first half of the 2023/24 fiscal year.

Cash Flow and Investments

RS Group PLC generated £26 million of adjusted free cash flow in the first half of the 2023/24 fiscal year. This was achieved despite significant investments in working capital, particularly inventory. The company continues to focus on balancing investment in growth accelerators with effective cost management to support long-term strategic goals.

Strategic and Operational Progress

RS Group PLC reported positive strategic and operational momentum in the first half of the 2023/24 fiscal year. The company is executing its growth strategy effectively, with plans to deliver more than £30 million in annualized savings through cost optimization and process improvements. The integration of recent acquisitions, such as Distrelec, is ahead of plan, further supporting the company's long-term growth potential.

Summarized from source with an LLMView Source

Key figures

-18.3%1Y

-44.1%3Y

1.21%5Y

Performance

31.4%1Y

31.5%3Y

30.5%5Y

Volatility