From the Chair: A challenging year but we remain confident about the opportunities ahead.

With the publication of the FY24 Annual Report Baroness Rona Fairhead , Chair of RS Group plc, takes a look back at the last 12 months and the future.

"Our People are fundamental to our success"

Last year was a challenging one for RS and the industry in general. The industrial market is cyclical but, by prioritising and pursuing the tremendous opportunities that lie ahead, we are confident in delivering through-cycle growth and significantly improved financial performance over the medium term. The people of RS are fundamental to our success and, again this year, they have been outstanding in terms of their dedication, professionalism and enthusiasm. My sincere thanks go out to each and every one of them.

Strategy

Our strategy remains the same but we have refined it during the year to provide greater focus, more alignment, better prioritisation and improved execution. We remain focused on organic growth, supplemented by value-accretive mergers and acquisitions (M&A).

The Board is fully supportive of the work that the Executive Committee (ExCo) team has undertaken to clarify the strategic actions and KPIs required to help us achieve our strategic goals and create sustainable value.

With our leadership in digital and our vast range of product and service solutions, we are well positioned to capitalise on the significant market opportunity.

Following its acquisition in January 2023, Risoul y Cia S.A. DE C.V. has outperformed our expectations. In Latin America, we see tremendous opportunities ahead as our team in RS Americas increases its collaboration with Risoul.

We were also pleased to welcome the Distrelec team into RS Group following completion of its acquisition in June 2023. Distrelec is a strong fit with RS in EMEA. Its rapid integration, in terms of combined sales, marketing and product management, will accelerate our business across the region. Our M&A pipeline is strong and we will continue to exercise strategic and financial discipline.

Our culture and values

The Board is clear that culture is fundamental to the success of our business. We have continued to admire and value the special culture that exists across our global operations.

Towards the end of the year, RS created a new set of values to unite the business behind how we should behave and work. Launched at our 2024 Leadership Event, the values help guide our decision making to deliver great outcomes, improve our corporate governance and reinforce our amazing culture – a culture of which we can all be proud.

The Board believes that these values outline what the business needs to do to be successful:

A strong Environmental, Social and Governance (ESG) approach is embedded in our culture and strategy and we remain focused on our commitment to raise ESG standards across our business and wider value chain. At RS, we are clear that strong ESG performance is a key part of our success and provides opportunities for business growth.

During the year, the Group has been included in the S&P Global Sustainability Yearbook 2024, positioned in the top 15% of companies in its industry, reflecting leadership and progress in sustainability. In addition, RS Group was awarded a platinum medal by EcoVadis for the second consecutive year, placing our business in the top 1% of the 100,000+ companies assessed.

The Board has seen real benefits from harnessing the full potential of diverse talents, perspectives and experiences to drive innovation, sound decision making and sustainable success. We were pleased to be recognised by the FTSE 100 Women Leaders Review where RS was ranked fourth due to having more than 50% of women on our Board.

Our stakeholders

Our vision is to become first choice for all our stakeholders: our people, customers, suppliers, communities, and shareholders. The Board and Company seek to engage actively with them all to understand their needs.

We fully understand our obligations to our owners - our shareholders, in addition to other Board members, I have spent a lot of time engaging with shareholders and we truly value that dialogue. In this regard, as well as building a strong, sustainable company for our owners, we also recognise the importance of our dividend to them, and the Board is pleased to continue with our progressive dividend policy.

Our Board

At the end of his first year at RS Group as Chief Executive Officer (CEO), the Board is delighted with how Simon Pryce has directed the business. He has recognised the challenges, refined the strategy and is positioning the business for improved execution and the growth opportunities ahead. We are confident that the greater clarity and focus will resonate strongly with our stakeholders and drive further value.

We were also thrilled to welcome Kate Ringrose as our Chief Financial Officer (CFO). She joined RS Group from Centrica, a FTSE 100 company, where she spent 18 years, culminating in the role of CFO. Kate has a strong track record of driving exceptional business transformation, operational excellence and strategic growth, and brings a wealth of experience that has already been of significant benefit to the Group.

We are confident that, under Simon’s leadership, supported by Kate and our global leaders, RS will be able to accelerate the execution of our strategy and capitalise on the opportunities ahead.

Before I conclude, I would like to turn to the Board. Our Board review has confirmed that we have a diverse range of relevant experience and expertise, even as we continue to shape our Board for the future. I would like to thank each member of the Board for their excellent counsel, insights and wisdom throughout the year. Once again, they have been tremendous.

Looking ahead

As we continue to navigate the challenging external environment, it is critical that we remain focused on executing our strategy with zeal and passion. We are excited and positive about the opportunities that lie ahead and feel confident that, with the right leadership and people in place, we will generate notable value and strong growth in the medium term.