RS Group shares slide as Q3 revenues decline

Shares in RS Group (LSE: RS1) fell 2.3% on Thursday after the industrial and electronics products distributor reported a 10% drop in like-for-like revenue in its third quarter. The FTSE 100 firm blamed “weaker than anticipated” markets amid a “difficult economic backdrop”.

In a trading update, RS said Q3 like-for-like revenue declined 10% year-on-year. This was driven by a 19% fall in the Americas and a 13% slide in Asia Pacific, while Europe, Middle East & Africa fell 5%. RS cited “weak industrial sentiment” and slow inventory unwinding, especially in electronics.

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Overall Q3 revenue rose 1%, aided by recent acquisitions. But RS warned that trading conditions remain challenging, especially in the Americas, albeit with easing comparators in Q4. The firm continues to invest in growth initiatives and operational improvements.