Fannie Mae, Freddie Mac shares tumble after conservatorship comments
LONDON - RS Group plc on Wednesday reported flat revenue for the fiscal year ended March 31, 2025, as challenging macroeconomic conditions offset growth in key segments.
The electronic components distributor maintained its dividend despite headwinds, signaling confidence in its strategic progress.
Revenue declined 1% year-over-year, with a 2% like-for-like decrease partially offset by a 2% benefit from acquisitions.
The company cited negative currency impacts and fewer trading days as additional 1% drags on the top line.
RS Group’s growth accelerators showed mixed results, with RS PRO and services/solutions segments growing 2% and 6% respectively on a like-for-like basis, while digital revenue fell 2%.
Gross margin held steady at 42.8% as anticipated. Adjusted operating profit margin came in at 9.4%, with cost inflation and organic investments partially mitigated by cost savings initiatives.
The company generated £29 million in cost savings during the year, bringing its two-year total to £38 million.
"RS is now executing more effectively, performing as it should and taking market share," said CEO Simon Pryce.
"We are delivering restructuring and integration benefits, improving efficiency and managing costs appropriately whilst continuing to invest in our people, customers, product, experience, infrastructure and technology."
The board declared a final dividend of 13.9 pence per share, bringing the full-year payout to 22.4 pence, a 2% increase from the previous year.
RS Group’s shares edged up 0.2% following the earnings release.
Looking ahead, management noted that market conditions remain challenging, particularly in EMEA and the UK.
However, the company expressed confidence in its ability to achieve medium-term financial targets once markets recover, including revenue growth at twice the market rate and mid-teen adjusted operating margins.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.