March 25 (Reuters) - Industrial and electronic components provider RS Group on Wednesday forecast annual adjusted pretax profit marginally ahead of market expectations, despite lower-than-expected
UK industrial supplier RS Group flags weaker revenue on tariffs impact
RS Group Revenue Impact and Market Response
Tariff Uncertainty and Revenue Outlook
March 25 (Reuters) - British industrial and electronic components supplier RS Group warned on Wednesday of lower like-for-like revenue in the reporting year ending on March 31 as U.S. tariff uncertainty prompted its larger customers in Mexico to delay orders.
The tariffs imposed by U.S. President Donald Trump last year left global companies exposed to mounting costs for most of 2025, with their impact continuing well into the new year. While the Supreme Court invalidated most of the tariffs last month, the uncertainty remains.
Market Reaction and Regional Performance
- Shares in RS Group, which supplies cables, protective equipment, and measurement tools, fell 4.8% as of 0925 GMT.
- It forecast lower second-half revenue for its Americas unit, even as it expects the EMEA and APAC regions to grow in the period.
- Mexico contributed nearly 7% of its annual revenue last year.
- The London-based firm expects its LFL revenue to dip 0.6% for the year ending March 31, from 2.90 billion pounds ($3.88 billion) it made a year ago.
Analyst Expectations and Profit Guidance
- Analysts had expected the firm's revenue to rise to 2.92 billion pounds, according to a company-compiled consensus.
- RS Group, however, expects adjusted pretax profit marginally above average market expectations of 241 million pounds, backed by margin expansion and cost controls.
Previous Warnings and Industry Context
- RS had already said in November that concerns over tariffs in Mexico had resulted in large customers deferring expenditure, impacting its revenues.
- Business supplies distributor Bunzl earlier this month said its Mexico safety business also logged flat sales and lower margins due to tariffs impacting business confidence.
Additional Information
($1 = 0.7469 pounds)
(Reporting by Nithyashree R B and Prerna Bedi in Bengaluru; Editing by Sonia Cheema, Rashmi Aich and Andrei Khalip)
