FTSE 100 and FTSE 250 shares – what to expect in the stock market next week

Among those currently scheduled to release results next week:

  • Moonpig should shed some light on how inflation is affecting trading
  • The CVS Group relies on cost-saving initiatives to offset inflationary pressures
  • Keywords Studios could provide clues to longer-term growth prospects and acquisition pipelines

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

*Events we keep investors informed about.

Keywords Studios – Derren Nathan, Equity Analyst

Keywords’ position as a one-stop-shop for video game developer services continues to enjoy robust demand and the group expects next week’s half-year revenues to rise 34% to €320 million, including 22% organic growth.

Fortunately, despite the inflationary environment, Keywords does not expect margin erosion on its underlying pre-tax profit. That is expected to increase by over 35% to around €54 million. Looking ahead, however, Keywords last month expected margins to hover at historic levels of around 15% as it invests in the business, moves employees and jobs out of Russia, and increases costs with the easing of COVID restrictions (think of premises and transport) return . We’d like a little more detail on how things are going on that front next week.

However, Keywords is not immune to economic headwinds and expects organic growth to moderate in the second half of the year. We should have more clues as to how much next week.

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Moonpig – Sophie Lund-Yates, equity analyst

Market sentiment towards online greeting card company Moonpig has been weak since the shares were first listed in February 2021. We don’t expect this to fully reverse next week. We’ll be specifically looking for commentary in the Outlook on how consumer behavior is affecting commerce. More lucrative add-ons like chocolates may not make it to the virtual tills as inflation is rampant. We are also curious about the projected impact of further Royal Mail strikes.

Moonpig’s growth has been looking artificially low lately as it skipped the pandemic when, unsurprisingly, online card sending was very popular. The group is now past that and the market expects full-year revenue to rise by around 15.5% to £351m. Next week’s trade statement should shed light on whether this is a realistic target.

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CVS Group – Matt Britzman, Equity Analyst

CVS operates over 500 veterinary practices in the UK, Ireland and the Netherlands. The pet boom during the pandemic and ongoing humanization trends have supported recent performance. Back in July, the group announced that full-year organic sales were up 8% on a like-for-like basis. However, that doesn’t mean it was easy. Full-year results next week will provide some insight into whether cost-cutting programs have been effective in offsetting inflation. The Group expects to achieve an underlying cash profit margin (EBITDA) in line with the previous financial year.

Serving the growing demand has been a bugbear for the entire industry as it is becoming increasingly difficult to attract qualified veterinarians to vacancies. CVS had a vacancy rate of 10.4% last year, up from 8.3% a year earlier. Management’s comment on how the group anticipates this trend in the new financial year would be welcome.

A strong balance sheet supports acquisitions, which are a key growth driver for CVS. The Group has already acquired a veterinary practice in Peterborough this financial year. It will be interesting to hear more pipeline news next week, particularly as it relates to overseas expansion.

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Unless otherwise noted, 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 go up and down in value, so investors can lose money.

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