RS Group PLC (RS1), the London-listed global industrial product and service solutions provider, has reported group revenue of £1,544 million for the half year ended 30 September 2026, up 10% year-on-year and 7% on a like-for-like basis. Adjusted operating profit rose 17% to £142 million, with the adjusted operating margin expanding 0.5 percentage points to 9.2%. The company declared an interim dividend of 8.9p per share, up 2% in line with its progressive dividend policy, and noted that trading momentum remains encouraging as it enters the second half.

Key Points

  • RS Group PLC (RS1) — London Stock Exchange listed global industrial distributor operating in 33 markets
  • Group revenue grew 10% to £1,544m in H1 2026/27, with like-for-like growth of 7% across all three regions
  • Adjusted operating profit up 17% to £142m; interim dividend raised 2% to 8.9p per share; over £35m of £100m share buyback completed
  • Investors will be watching second-half progress given less favourable comparators and ongoing geopolitical and inflationary cost pressures

RS Group Delivers £142m Adjusted Operating Profit as All Three Regions Outperform Expectations

RS Group, which stocks over 875,000 industrial and specialist products sourced from more than 2,500 suppliers, reported adjusted profit before tax of £133 million for the half, up 19% year-on-year. Adjusted basic earnings per share rose 19% to 20.9p. Gross margin improved 0.3 percentage points to 43.4%, supported by pricing discipline and targeted price initiatives. Adjusted operating cash flow conversion reached 96%, ahead of the company's internal target of over 80%, despite increased inventory investment to support growth. The company highlighted that manufacturing sentiment remained in positive territory across its major markets during the period.

RS PRO Surpasses 100,000 Products as Digital and eProcurement Revenues Grow

RS PRO, one of the company's key strategic growth drivers, surpassed 100,000 products during the half and now contributes 14% of group revenue and 20% of EMEA revenue. RS PRO revenue grew 16% on a like-for-like basis in Asia Pacific and 30% in the Americas. Digital revenue reached £892 million, up 6%, while eProcurement revenue grew 8% on a like-for-like basis, with EMEA delivering 9% growth. Services and solutions revenue rose 7% to £402 million. The company also launched an AI-enabled platform to accelerate RS PRO product onboarding, reflecting its broader strategy of deploying artificial intelligence across customer, pricing and digital operations.

Italy and Ireland Distribution Centre Upgrades on Track; ERP Overhaul to Begin in 2027/28

RS Group is advancing distribution infrastructure upgrades in Italy and Ireland, both expected to go live in the second half of the financial year. The Italy facility will deploy the company's next-generation Robotic Warehouse Automation System, intended as a blueprint for future regional distribution centre automation. Net debt increased to £369 million, partly due to new distribution centre lease liabilities of £35 million, with net debt to adjusted EBITDA at 1.1 times. A phased Enterprise Resource Planning upgrade is due to commence in 2027/28, with the company noting that unanticipated freight cost increases linked to the conflict in the Middle East represent a near-term cost pressure.

RS Group Maintains Medium-Term Targets of Mid-Teen Margins and Revenue Growth at Twice the Market

The company reiterated its medium-term financial targets, including revenue growth at twice the market rate, an adjusted operating margin in the mid-teens, cash conversion above 80%, and return on capital employed exceeding 20%. Company-compiled consensus for the full year ending 31 March 2027 stands at revenue of £3,017 million and adjusted operating profit of £284 million. RS Group cautioned that the second half will face less favourable comparators than the first half and that it will continue to manage inflationary and fuel-related cost pressures, while remaining confident in its strategic investment programme's ability to capture growth opportunities.