Supplying components “just in time” means global industrial distributor RS Group can charge a premium for the speed and breadth of products delivered. But it also means the FTSE 100 group is acutely short-sighted over future revenue. As global recessions take hold, investors have become more wary of the group’s ability to sustain sales growth as manufacturing output declines.
Even bullish guidance could not draw more positivity from investors. RS, formerly Electrocomponents, expects profit this year to be at the top-end of the consensus range of £350 million to £375 million. Gaining market share and mitigating cost inflation with higher prices has helped to counter weaker sales.
Still, top-line growth has slowed. An increase in revenue of 8 per cent in the latest three months
