RS Group PLC (LSE:RS1) said trading in the first half to end-September was strong, with continued growth in market share, and forecast that full-year revenue and adjusted profit will be slightly ahead of market consensus expectations.
For the year ending 31 March 2023, analysts are forecasting revenue of £2.85bn, adjusted operating profit of £364.9mln and adjusted profit before tax of £357.7mln, the distributor of industrial and electronics products said in a trading update.
The company noted that profits for the year will have a greater first-half weighting than historically delivered. Although growth is expected to slow in the second half, “we have several financial levers we can employ, if appropriate, to protect our profit”, it said.
Like-for-like revenue increased by 16% in the first half, with the rate of growth slowing from 18% in the first quarter to 15% in the second.
The company said increased inflationary cost pressures are being offset by strong control and positive operating leverage.
"We remain mindful of the more challenging economic backdrop but believe we have built a strong, sustainable business that can withstand external headwinds and outperform the market,” said chief executive Lindsley Ruth.
“As such, we will continue to invest in our product and service solutions capability and customer experience to support our Journey to Greatness and drive profitable growth, capitalising on the significant market share opportunity we see."
Shares climbed 2.39% to 1,030.00p in midmorning trade.