LONDON (dpa-AFX) - British electronic distributor RS Group plc (RS1.L) reported Thursday lower profit in its first half, with flat revenues, amid more difficult than anticipated markets. Looking ahead, the company expects the outcome for fiscal 2025 to be in line with current market expectations.
On the London Stock Exchange, RS Group shares were gaining around 8.3 percent to trade at 738 pence.
For the first half, profit before tax fell 16 percent to 106 million pounds from last year's 126 million pounds. Earnings per share were 16.6 pence, compared to 19.5 pence a year ago.
Adjusted profit before tax was 119 million pounds, compared to prior year's 143 million pounds. Adjusted earnings per share were 18.7 pence, compared to 22.3 pence a year ago.
Revenue for the first half was 1.441 billion pounds, nearly flat with prior year's 1.447 billion pounds.
Further, the company said its Board proposed an interim dividend of 8.5 pence per share, up 2% from last year. The dividend will be paid on January 3, 2025 to shareholders on the register on November 22.
Looking ahead, RS Group said it has continued confidence that, as markets return to growth, it can deliver financial targets, including a mid-teens operating margin, in the medium term.
For the second half, the company said, 'We are not anticipating any material market improvement for the remainder of 2024/25. .. We are reacting effectively to market conditions, exercising strong operational discipline, gaining share and bringing forward our cost efficiency and integration plans. As a result, whilst short-term trading visibility remains limited, we will continue to flex the cost base appropriately and expect the outcome for the full year 2024/25 to be in line with current market expectations.'
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