RS Group ups cash conversion target as it outlines strategy

24th Sep 2024 10:31

(Sharecast News) - RS Group said on Tuesday that it had identified around 150 basis points of additional cost efficiencies, which would contribute to achieving its medium-term target of mid-teen operating profit margins.

The FTSE 250 company was hosting an investor event outlining its investment proposition and strategy, saying it aimed to deliver revenue growth at twice the market rate.

It revised its cash conversion target to over 80%, up from the previous target of over 70%, and was targeting a return on capital employed (ROCE) of over 20%.

The group reported a strong positioning in growth markets, adding that its differentiated proposition had been instrumental in gaining market share.

Its management emphasised its commitment to investing in efficiency improvements and enhancing operating leverage, which were expected to support ongoing growth.

Management also reiterated its confidence in the group's ability to create substantial value for all shareholders through focussed investments and strategic acquisitions.

At 1025 BST, shares in RS Group were up 2.6% at 807.5p.

Reporting by Josh White for Sharecast.com.