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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.

Matt Britzman
Equity Analyst

Published on 25 August 2023

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.

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

Bunzl's half-year results come up against a tough comparable half
Will the tough economic backdrop see Grafton Group's volumes fall further?
New accounting rules for Prudential but China will be in focus

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Among those currently scheduled to release results next week:

*Events on which we will be updating investors.

28-Aug
No FTSE 350 Reporters

29-Aug
Bunzl*	Half Year Results

30-Aug
Prudential*	Half Year Results

31-Aug
BBGI Global Infrastructure	Half Year Results
Grafton Group	Half Year Results
Kainos Group	Q3 Trading Statement

01-Sep
No FTSE 350 Reporters

Bunzl – Matt Britzman, Equity Analyst

Bunzl has guided to 4-5% revenue growth in next week’s half-year results. Though when you strip out the effect of currency moves and other one-off items, revenue’s expected to be broadly flat. The small amount of underlying growth seen over the first quarter looks to have reversed over the second, and guidance on operating margins points to something lower than the 7.4% delivered last year.

It’s set to be a tricky year given comparable periods benefitted from spikes in demand for a range of Covid-related products that are now normalising. Bunzl sources and delivers a range of essential products so there should be an element of resilience in demand, even if economic conditions are tough. Keep an eye out for talk on costs and price hikes, margins have been kept afloat by good management of those two factors to date.

See the Bunzl share price, charts and our latest view

Grafton Group – Aarin Chiekrie, Equity Analyst

In a first-half trading update back in July, DIY retailer Grafton Group reported revenue growth of 0.8% to nearly £1.2bn, ignoring the impact of exchange rates. 60.0% of Grafton’s revenue comes from Ireland, the Netherlands and Finland, which provided some welcome relief to its top line as the UK region underperformed, with revenues here shrinking 2.3%.

In its two largest markets by profit, the UK and Ireland, Grafton also experienced lower volumes and margin pressures as a result of sharp falls in timber and steel prices. We expect this trend to continue into the second half as commodity prices normalise and lap tough comparative periods, and next week’s results should provide more detail on just how painful this period could be. For now though, underlying operating profit guidance for the full year has been maintained at around £205m, a 28.3% drop on last year. Any further pullback on volumes could see this guidance revised lower.

See the Grafton Group share price, charts and our latest view

Prudential – Matt Britzman, Equity Analyst

Last we heard, performance was being helped by the reopening of China and Hong Kong, boosting sales and demand for savings products. This is especially good news for Hong Kong operations, a key market. Due to the rising cost of medical attention, visitors to the region are highly likely to buy insurance. Half-year results next week should shed some light on how things are progressing, with the backdrop of a weaker than expected Chinese economy raising some questions.

Looking further ahead, the Asian business should benefit from long-term economic development in its markets, driving increased demand for PRU's insurance products - since in many cases, state-sponsored social security has never got off the ground. A focus on regular premium products like life and health insurance should hopefully make profits reasonably dependable although of course there are no guarantees.

See the Prudential share price, charts and our latest view

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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