RS Group PLC on Tuesday said it delivered a ‘strong’ yearly performance, with revenue and profit growth despite a ‘challenging macroeconomic backdrop’.

The London-based industrial and electronics products distributor said revenue for the year ended March 31 grew by 17% to £2.98 billion from £2.55 billion a year prior, citing strong growth across its industrial product ranges in the Americas, Europe, Middle East & Africa and Asia Pacific regions.

Pretax profit was £383.0 million, up 24% from £308.8 million in financial 2022.

RS Group proposed a final dividend of 13.7 pence per share, up 18% from 11.6p a year prior, bringing the total proposed dividend to 20.9p per share, a 16% increase from 18.0p per share a year before.

Looking ahead, RS Group said trading for the first seven weeks of financial 2024 have been impacted by a slowing in industrial growth. However, the company said it remains comfortable with financial 2024’s market consensus profit expectations of £930 million for adjusted operating profit and adjusted pretax profit of £379 million. RS Group expects its performance to be more weighted towards the second half of the financial year.

Chief Executive Officer Simon Pryce said: ‘RS delivered a strong performance in 2022/23 despite a more challenging macroeconomic backdrop in the second half. This reflected our on-going operational excellence initiatives, geographical, industry and product mix, inventory availability and strong pricing.’

Shares in RS Group were down 3.2% at 825.20 pence each in London on Tuesday morning.

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