5th Apr 2023 08:34
(Alliance News) - RS Group PLC on Wednesday said it anticipates full-year profit to be slightly ahead of consensus expectations and revenue to be in line with estimates.
The London-based industrial and electronics products distributor noted revenue growth for the fourth quarter slowed, however. Shares traded 2.9% lower at 868.80 pence each, the worst FTSE 100 performer.
For the year ended March 31, RS said it saw 10% like-for-like revenue growth. It delivered growth of 12% in the Europe, Middle East & Africa and 11% growth in the Americas. Like-for-like revenue in the Asia Pacific region fell 1%, however.
For the fourth quarter alone, group like-for-like revenue improved 1% on-year, slowing from growth of 8% in the third quarter and 15% and 18% in the second and first, respectively.
Chief Financial Officer David Egan said: "Effective execution and the ongoing hard work, enthusiasm and passion of our people has led to a very strong performance in 2022/23 and we anticipate full year adjusted operating profit to be slightly ahead of consensus expectations."
It said adjusted operating profit consensus stands at GBP382.0 million, which if achieved, would represent growth of 19% from GBP320.4 million the prior year.
Consensus for revenue is GBP2.99 billion, up 17% from the GBP2.55 billion it achieved the last financial year. Adjusted pretax profit consensus stands at GBP373.0 million, up 19% from GBP313.8 million.
Further, it noted newly-acquired Risoul y Cia SA in Mexico was "trading strongly" with integration progressing well. RS bought the family-owned distributor of industrial and automation product and service solutions in Mexico for USD275 million at the start of the year.
By Tom Budszus, Alliance News reporter
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