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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 £382.0 million, which if achieved, would represent growth of 19% from £320.4 million the prior year.
Consensus for revenue is £2.99 billion, up 17% from the £2.55 billion it achieved the last financial year. Adjusted pretax profit consensus stands at £373.0 million, up 19% from £313.8 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 $275 million at the start of the year.
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