**RS Group Reports Steady Financial Performance Amid Market Challenges**
RS Group (LON:RS1) announced that for the fiscal year ending March 31, 2026, it achieved revenue performance in line with expectations, despite a 1% year-over-year decline in reported revenue. On a like-for-like basis, revenue remained flat, buoyed by a 2% increase in average prices, although volumes fell by approximately 2.5%. Adjusted profit before tax saw a low single-digit decline, reflecting increased organic investments and reduced interest charges. The company achieved a cash flow conversion rate of 109%, with net debt decreasing to £329 million, aligning with its target leverage range.
Chief Executive Simon Pryce noted improving revenue trends in the second half, particularly in EMEA, where the UK shifted to growth and France outperformed, while Germany remained challenging. RS Group’s digital revenue, constituting around 60% of total revenue, decreased by 1% due to softer web demand. However, segments such as RS PRO and solutions outperformed, growing 5% and 6% respectively.
In terms of capital allocation, RS Group announced a 2% increase in its final dividend to 14.2 pence per share, totaling 22.9 pence for the year. The company also initiated a £100 million share buyback program and completed the acquisition of BPX for up to £30 million in March. Looking ahead, Pryce emphasized the importance of strategic investments, aiming for revenue growth at twice the market pace and maintaining strong operational efficiency amid economic uncertainties.
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