UK's RS Group H1 revenue rises on pricing, volume growth
Overview
UK industrial solutions provider's H1 revenue rose 10% yr/yr to £1.54 bln
Adjusted operating profit for H1 rose 17% yr/yr, margin expanded to 9.2%
Company completed over £35 mln of £100 mln share buyback programme
Outlook
Company expects trading momentum to remain encouraging in H2 2026/27 despite macro volatility
Company expects gross margin to remain stable in H2 2026/27
Company expects H2 2026/27 fixed costs to grow about 7%, variable costs at 14% of revenue
Result Drivers
PRICE AND VOLUME GROWTH - Co said revenue growth was driven by higher prices and increased volumes as end markets improved
PRICING INITIATIVES - Improved gross margin attributed to pricing actions and inflation, per co
AI AND DATA TOOLS - Expanded use of AI and data platforms supported customer targeting, pricing and operational efficiency
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | GBP 1.54 bln | ||
H1 EBIT | GBP 131 mln | ||
H1 Pretax Profit | GBP 121 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for RS Group PLC is GBp800.00, about 5.3% above its November 4 closing price of GBp760.00
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)