RS Group reports flat trading in Q1, reiterates outlook; shares slip

Published 17/07/2025, 10:02
© Reuters.

Investing.com -- RS Group PLC (LON:RS1R) released a trading update on Thursday ahead of its annual general meeting (AGM), noting that it continues to make solid operational progress and is maintaining its full-year outlook.

Still, the company’s shares slipped 1.5% in London trading as of 08:35 GMT. 

In the first quarter ending June 30, 2025, EMEA performance was impacted by weaker PMI trends, while trading in the Americas and Asia Pacific proved more resilient, the company said. 

Like-for-like revenue declined 2% year-on-year, though RS Group pointed out that, excluding a temporary and expected impact from ongoing operational upgrades, trading was broadly flat. These included key projects such as a digital platform upgrade in the Americas and the consolidation of a Distrelec distribution center in EMEA.

"We view this as a solid performance in a volatile macro backdrop from 1 April to 30 June given the evolving global tariff environment," Stifel analysts commented.

They maintained their Buy rating on RS Group, citing valuation support with the stock trading at a 20% discount to its 10-year EV/EBITDA average.

"We see upside from stabilising (then improving) trading trends and delivery against the strategic objectives set out in the September 2024 CMD," the team added. 

Looking ahead, RS Group said it remains focused on strengthening its offering, gaining market share, and improving operational efficiency.

“We are confident that this will generate sustainable value and stronger returns as markets recover, in line with our medium-term financial targets," it added. 

Morgan Stanley (NYSE:MS) analysts said they "don’t expect consensus to move today" following the update.

 

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