RS Group reported a rise in first-half profit and revenue ahead of City forecasts, as the London-listed industrial distributor said market conditions improved across all of its regions.

Revenue grew 10% to £1.54 billion in the six months to 30 September, with like-for-like sales up 7%. Adjusted operating profit rose 17% to £142 million, ahead of a Visible Alpha consensus of £136 million cited by RBC Capital Markets, while adjusted pre-tax profit increased 19% to £133 million. Pre-tax profit rose 8% to £121 million.

Chief executive Simon Pryce said the group had made a good start to the 2026/27 financial year, with momentum improving from the first quarter to the second. He cautioned, however, that comparisons with the previous year would become more challenging in the second half.

Growth broadened across the group's regions. In Europe, the Middle East and Africa, like-for-like revenue rose 5% as manufacturing sentiment strengthened. In the Americas, revenue rose 9% while operating profit increased 25% to £44 million.

The group raised its interim dividend by 2% to 8.9p per share and said it had completed more than £35 million of a £100 million share buyback. Shares in RS Group rose 5.3% to 800p on the day the results were published.

RS Group, formerly Electrocomponents, stocks more than 875,000 industrial and specialist products from over 2,500 suppliers and operates in 33 markets. The company said it expects gross margin to be stable in the second half while it continues to manage inflationary and fuel-related cost pressures.