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Next week on the stock market

What to expect from a selection of FTSE 100, FTSE 250 and selected other companies reporting next week.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Sophie Lund-Yates
Lead Equity Analyst

Published on 26 August 2022

This article is more than 6 months old

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

Among those currently scheduled to release results next week:

Bunzl is hoping to see strong performance from higher inflation
Order backlog and margins in focus at Kainos

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FTSE 100, FTSE 250 and selected other stocks scheduled to report next week:

29-Aug
No FTSE 350 reporters

30-Aug
Bunzl	Half Year Results

31-Aug
No FTSE 350 reporters

01-Sept
Kainos	Trading Statement

02-Sept
Ashmore Group	Full Year Results

Bunzl – Matthew Britzman, Equity Analyst

The covid-19 related boost in sales may be normalising for specialist distribution and service group, Bunzl, but their base business looks to be performing well. Revenue guidance has been upgraded from 'moderate' to 'very good' for the year and it'll be interesting to see how much cost inflation has been passed onto buyers through regular pricing reviews.

Bunzl's own brand products can be sold and distributed for higher margins. As higher prices add pressure to consumer finances, operating margins should benefit as buyers opt for cheaper products.

Acquisitions take up a decent chunk of free cash flow for Bunzl, who typically buy small, low-risk companies with margins higher than the group's average. This strategy has worked for many years, but price inflation has meant the lion's share of recent growth has been organic. Investors will be eagerly anticipating any news on the next round of acquisitions.

They have previously seen 29 years of dividend growth so investors will be keeping a close eye for the announcement next week. Please remember, dividends are variable and not guaranteed.

See the Bunzl share price and charts

Kainos – Sophie Lund-Yates, Equity Analyst

Kainos is first and foremost a technology company, providing IT, consulting and software solutions. One of the things we like about Kainos is it has a broad mix of different customers, from both the public and private sectors, across both healthcare and commercial customers. This model feeds into the group's strong underlying demand – it had a £260m contracted backlog last year.

We don't expect this to be interrupted in next week's trading statement. A lot of the sorts of products on offer are things companies will still want to spend on, even with the economic outlook looking a bit gloomy.

One thing we will be watching for is any commentary on the margin outlook. Kainos has been sacrificing margins in the name of growth. This isn't an unusual tactic for a fast-growing tech company, but we'd like some further information on this strategy.

See the Kainos share price and charts

Unless otherwise stated estimates are a consensus of analyst forecasts provided by Refinitiv. These estimates are not a reliable indicator of future performance. Past performance is not a guide to the future. Investments rise and fall in value so investors could make a loss.

This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.

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