REG - RS Group PLC - AGM Update

RSAnnouncement

11/07/2024 07:00

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RNS Number : 9276V  RS Group PLC  11 July 2024

 
11 July 2024, 7.00 am

 

RS GROUP PLC

 

AGM update

 

RS Group plc, the global distributor of maintenance, repair and operation
products and service solutions to industrial customers, provides the following
trading update for the three months ended 30 June 2024, ahead of its Annual
General Meeting to be held at 12.00 pm today.

Trading in the first quarter was in line with expectations. Group revenue grew
3% over the same period in the prior year and declined by 3% on a
like-for-like basis, excluding acquisitions, foreign currency and trading
days.

As trading conditions stabilise and comparatives get easier, the pace of
decline in like-for-like revenue across all three regions continues to slow as
anticipated. In EMEA, like-for-like revenue declined 3% reflecting largely
ongoing volatility in various PMIs(1) across the region, although total
revenue grew by 7% with an additional quarter's contribution from Distrelec.
Like-for-like revenue in Americas benefitted from a strong performance from
Risoul but declined by 3% due to continuing weakness in electronics and
industrial automation markets. Similarly, Asia Pacific continues to be
impacted by weakness in electronics with like-for-like revenue down by 3% but
is beginning to demonstrate underlying improvement.

We are progressing well with our cost savings programme, the integration of
our acquisitions, and investment in operational efficiencies and system
enhancements. We remain confident this multiyear investment will improve
future operating leverage and returns.

Investor Event: 24 September 2024

We look forward to hosting our Investor Event on 24 September 2024 in London
to outline our investment proposition and strategic action plan to generate
sustainable through-cycle growth and returns.

 

Notes:

1.         Purchasing manager index (PMI) is a survey-based economic
indicator designed to provide a timely insight into business conditions. The
PMI is widely used to anticipate changing economic trends in official data
such as GDP, or sometimes as an alternative gauge of economic performance and
business conditions to official data, as the latter sometimes suffer from
delays in publication, poor availability or data quality issues (Source:
S&P Global).

2.         Consensus estimates for the year ended 31 March 2025 is
revenue of £3,019 million, adjusted operating profit of £307 million and
adjusted profit before tax of £274 million. Source:
rsgroup.com/investors/analyst-consensus/.

3.         Our profit remains sensitive to movements in exchange rates
on translation of overseas profits. Average exchange rates for the year ended
31 March 2024 for euro and US dollar respectively were €1.159 and
$1.257 respectively. Every 1 cent movement in the euro has a c. £2.0 million
impact on annual adjusted profit before tax. Every 1 cent movement in the US
dollar has a c. £0.7 million impact on annual adjusted profit before tax.

4.         We expect to see a positive impact of around £29 million
on revenue from greater trading days in 2024/25 compared to 2023/24.

 

 Enquiries:
 Kate Ringrose                    Chief Financial Officer  020 7239 8400
 Lucy Sharma                      VP Investor Relations    020 7239 8427
 Martin Robinson / Olivia Peters  Teneo Communications     020 7353 4200

 

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