RS GROUP PLC: Model update: FY27e and FY28e EPS +3%

Research evidence excerpt

RS GROUP PLC: Model update: FY27e and FY28e EPS +3%

Jane L Sparrow AC Europe Equity Research

(44-20) 3493-7101 16 July 2026 C A Z E N O V E

jane.sparrow@jpmorgan.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

RS Group is a distributor of industrial and electronic products

for designers, builders and maintenance technicians of industrial

equipment and operations. Around 20% of the group is exposed

to Electronics, with the majority exposed to industrial products,

largely in the MRO (Maintenance, Repair, Operations) space.

Importantly, RS Group offers its customers the ability to buy

products in small quantities (average order size £257), acting as

a one-stop shop. RS Group has a wide range of products (over

750,000 stocked SKUs) and is growing its value-added

YTD 1m 3m 12m solutions business, offering out-sourced procurement and

Abs 7.5% 8.2% 14.8% 16.1% inventory management.

Rel 2.0% 6.6% 10.7% 6.3%

While the top-line recovery has been slower than we initially

Company Data expected, the business has started to see more positive

Shares O/S (mn) 471 momentum in recent quarters. We also believe on a longer-term

52-week range (p) 740-539

Market cap ($ mn) 4,279.96 view RS Group offers a combination of: 1) exposure to a

Exchange rate 73.86 manufacturing recovery (through MRO, industrial automation,

Free float (%) 99.7% electronics) and secular growth; and 2) a self-help story as

3M ADV (mn) 1.29

3M ADV ($ mn) 10.9 management target improved operating leverage and higher

Volatility (90 Day) 38 medium-term margins. We believe there is significant capacity

Index FTSE 250 within the business to support top-line growth without the need

BBG ANR (Buy | Hold | Sell) 12|4|1

for additional investment in physical infrastructure.

Key Metrics (FYE Mar)