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

Among those currently scheduled to release results next week:

  • Half year results look promising for AG Barr as the UK economy reopens
  • We’ll see whether United Utilities has been able to fend off inflationary pressures
  • boohoo will reveal whether it’s managed to eek out revenue growth after a murky first quarter

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

26-Sep
Not FTSE 350 Reporters
28-Sep
boohoo* Half Year Results
29-Sep
Next* Half Year Results

*Events on which we will be updating investors.

AG Barr – Derren Nathan, Equity Analyst

UK drinks group AG Barr’s welcomed the reopening of hospitality and “exceptional” British summer weather as performance on their catalog of drinks showed positive momentum. Coupled with successful pricing and marketing, the group expects revenue to rise 16% from a year earlier to £157m. Margins have also looked strong, and last year’s growth was no mean feat in the current environment. These higher margins will allow some headroom from rising costs, but management acknowledges they aren’t immune, so further confirmation that full year profit’s expected to grow would provide some comfort to investors.

Last year’s strong performance allowed the group to reinstate the dividend after a suspension in 2020. A healthy cash position means investors will be watching on for any further dividend progression next week.

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United Utilities – Laura Hoy, Equity Analyst

United Utilities has seen revenue climb beyond pre-pandemic levels as non-household demand returned, but unfortunately operating profits haven’t come along for the ride. We’re expecting United Utilities to warn for more of the same when it reports. Higher materials and labor costs should wipe out any revenue gains this year, and the next price review isn’t set to kick in until 2025. Between the growing need to shore up leaky pipes and calls to keep customer bills down amid the cost-of -living crisis, the next regulatory cycle may not offer much relief anyway.

Dividends will be on investors’ minds – with a prospective yield of over 4%, United Utilities is somewhat of an income play. The group’s said it will raise its dividend in line with inflation. But given this environment, UU could find itself having to dip further into debt to keep on top of its dividend payments. Remember though, yields are variable and not a reliable indicator of future income.

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boohoo – Laura Hoy, Equity Analyst

The big question when boohoo reports is whether or not demand is holding up in the current environment. Supply chain bottlenecks are an industry-wide issue, but they could put a serious damper on boohoo’s growth plans. First quarter results were lackluster at best and given the group’s investing heavily in expanding capacity, demand is essential if it’s to pull off an expansion in the US.

After a revenue decline in the first quarter, investors will be looking for improved trading at the half in order for the group to make good on its forecast for single-digit full year growth. That’s a tall order considering consumers are more cash-strapped than ever. While the group’s appeal to the younger generation remains in question as budgets are stretched, the addition of new brands that cater to different demographics have the potential to bring fresh growth through the door. We’d like an update on how acquisitions like Debenhams and Dorothy Perkins are faring under the boohoo umbrella.

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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
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