RS Group has reported a like for like 1% revenue decline to £1.4 billion for the half year, in line with expectations. Profit before tax advanced 7% to £112 million.
The Group reported growth in Q2 and a 0.4% increase in gross margin.
RS Group CEO Simon Pryce commented: “I’m pleased our performance in the first half of the year was in line with expectations and our full year outlook is unchanged. Like-for-like sales for the Group were broadly flat, with growth in Americas and APAC offsetting a small decline in EMEA, and the Group as a whole moved into marginal growth in Q2. This was a solid outcome given continued uncertainty in most of our markets and was another half of relative outperformance.
“The first half results benefited from ongoing restructuring efforts, and improved agility on both pricing and cost management,” added Pryce (pictured). “We also continued to improve the business through effective execution of a range of targeted and longer-term strategic initiatives to accelerate growth, improve efficiency and drive better operating leverage over time. These initiatives are driving improvements in some of our key underlying operational metrics and providing resilience in financial performance while market conditions continue to be weak. Our continued good strategic and operational progress is a result of the focus and continued hard work of all colleagues across the globe. This underpins our confidence in delivering on our medium-term financial targets to generate much improved returns and long-term sustainable value, particularly once our markets demonstrate more sustained recovery.”
Average order value increased by 3% to £257, although RS saw reductions in average order frequency and in the number of customers in its key customer segment, with the weak economic environment impacting demand.
Around the regions, EMEA revenues dipped 3% like for like to £864 million, the Americas revues rose 1% like for like to £429 million and Asia/Pacific grew 1% like for like to £110.1 million.
In line with its strategy to grow share of customer wallet, RS delivered 4% like-for-like revenue growth from corporate customers. Higher uptake of an eProcurement solution from these larger customers was a major factor in 7% like-for-like revenue growth in service solutions.
Own-brand business RSPro continued to perform well delivering revenue growth up 4% like-for-like to £17.4 million. At a product category level, the more resilient product categories of Facilities & Maintenance and Mechanical & Fluid Power continue to outperform in EMEA, with Americas delivering improved Automation & Control (A&C) and Electrification revenues. Demand for Semis & Passives remained weak across the Group.
