By Najat Kantouar

Shares in RS Group rose after the company launched a share buyback plan of up to 100 million pounds ($134 million), reflecting confidence in meeting its medium-term financial targets and a strong balance sheet.

In morning trading, London-listed shares were up 11.8% at 6.72 pounds. Year to date, shares have risen more than 6%.

The industrial and electronic products distributor said Wednesday that it expects improving momentum into fiscal 2027 as most of its major markets are now back into low-single-digit-percentage revenue growth.

"We remain mindful of geopolitical and economic developments and conflicts in the Middle East and Ukraine and the potential impact they might have on global supply chains, industrial production and customer behaviour," the company added.

RS Group remains well-positioned for recovery, RBC Capital Markets analysts Andrew Brooke and Karl Green write in a note.

For the fiscal year ended March 31, pretax profit rose to 219.7 million pounds from 206.1 million pounds in the same period a year earlier.

Adjusted operating profit was 265 million pounds compared with 274.2 million pounds, representing a 4% decline on a like-for-like basis. The corresponding margin was down to 9.2% from 9.4%.

Revenue fell to 2.88 billion pounds from 2.90 billion pounds, mainly driven by currency volatility due to a weak U.S. dollar and a 1% revenue decline in its digital segment, which contributes 60% of group revenue, it said.

Analysts had forecast revenue of 2.87 billion pounds and adjusted operating profit at 265 million pounds.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

May 20, 2026 06:26 ET (10:26 GMT)

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