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RS Group bemoans macroeconomic factors as quarterly revenue declines

27th Jul 2023 10:08

(Alliance News) - RS Group PLC on Thursday blamed a weak electronics market, as well as a generally poor macroeconomic environment, for a revenue decline the recent quarter.

The London-based industrial and electronics products distributor reported a like-for-like annual revenue decline of 7% in the three months that ended June 30, RS Group's financial first quarter, compared to 18% like-for-like revenue growth in the same quarter a year ago.

RS Group attributed this to a "more challenging environment" as indicated by deteriorating purchasing managers' index readings, a continued tough electronics market, and a weakening industrial market.

Regionally, trading in the Americas, as well as Europe, the Middle East & Africa, was marginally softer than anticipated over the quarter. Like-for-like revenue for the Americas fell 13%, compared to growth of 24% a year before, while EMEA revenue declined 3%, compared to 16% growth a year before. In Asia Pacific, revenue declined by 19% on the same basis, compared to 13% growth a year before.

"Trading for the quarter was marginally softer than anticipated, reflecting the more difficult macroeconomic backdrop and tough comparatives," said Chief Executive Officer Simon Pryce.

Nevertheless optimistic, Pryce added: "We are reacting well in this more challenging trading environment with greater focus and by managing our cost base effectively whilst continuing to make strategic investments for the future. I am confident in the RS strategy and scale of opportunity as we continue to position the group to deliver long-term and through-cycle value creation for our stakeholders."

In a separate announcement on Thursday, RS Group said that it has appointed Kate Ringrose as its new chief financial officer.

Ringrose will join RS on October 2. She was CFO at Centrica PLC until the end of February this year, have worked for almost 20 years at the British Gas owner.

Of the appointment, Pryce said: "Kate has a proven track record as a FTSE 100 CFO, and experience in helping to lead high performance organisations that improve business resilience, drive operational excellence and deliver accelerated strategic growth."

RS Group shares were trading marginally higher at 760.20 pence each in London on Thursday morning.

By Holly Beveridge, Alliance News reporter

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