|
RS Group PLC on Wednesday posted improved profit, despite a softer top line, as it initiated an up to £100 million share buyback programme. The London-based industrial and electronics products distributor reported £219.7 million in pretax profit for the financial year that ended March 31, up 6.6% from £206.1 million a year prior. Revenue however fell 0.8% to £2.88 billion from £2.90 billion, as RS noted markets were more challenging that initially anticipated. The improved earnings despite the weaker top line is owed to lower costs, as cost of sales declined 1.8% to £1.63 billion to from £1.66 billion. RS Group proposed a final dividend of 14.2 pence per share, up 2.2% from 13.9p. This brought its total dividend for the financial year to 22.9p, up 2.2% from 22.4p. The company said it made ‘good progress’ during the financial year, and said it sees ‘improving momentum’ in financial 2027, noting that most of its major markets are now back into low single digit growth. RS Group expressed confidence in achieving its medium-term financial objectives of growing revenue at twice the market, mid-teen adjusted operating margins, cash conversion over80% and over 20% return on capital employed. The company also commenced an up to £100 million share buyback programme on Wednesday, with the scheme set to end by May 19 next year. Shares in RS Group shot up 9.1% to 655.00 pence on Wednesday morning in London. ‘2025/26 was another year of strong execution of our multi-year plan to improve the business and deliver on the significant value creation opportunity at RS. Revenue was broadly flat in challenging markets, but we gained share with most major suppliers and saw stronger momentum in the second half, particularly in Asia Pacific and US & Canada, with EMEA also returning to growth,’ said Chief Executive Simon Pryce. ‘Two years of positive underlying progress, combined with disciplined cost control and a clear plan, increases our confidence in delivering our medium-term financial targets and sustainable returns.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
