Veterinary services firm CVS Group PLC (LON:CVS) and gambling software group GAN PLC (LON:GAN) are set to headline a relatively quiet Friday in the City.
CVS, which owns over 500 vet surgeries throughout the UK, Ireland and Netherlands, had a shocker back in January when it warned a shortage of vets would put a big dent in full-year earnings.
For its half-year results, a small decline in underlying earnings (EBITDA) is expected as a fall in margins more than offsets a rise in sales.
CVS is looking to deliver cost savings of £1.2mln in the second half, so investors will want to see progress being made in this department.
“Key news will be on like-for-like sales growth, which had slowed to 2% in November and December, and labour cost increases,” said analysts at Peel Hunt.
“Like-for-likes should be better given milder weather and price increased. Labour costs have continued to rise as the company has increased wages to retain staff and had to pay higher locum costs.”
GAN set for another good year
GAN went the other way with its January update as it lifted guidance ahead of Friday’s full-year results.
Revenue is expected at between £10.5-11.3mln for 2018, compared with £9.1mln in 2017.
Not only did bosses say that last year was good, but this year is expected to be just as good, if not even better.
“The outlook remains highly positive due to continued and rapid growth in real money Internet gambling delivered for clients in both the US and European markets,” it said back in January.
“The company therefore expects the strong momentum achieved during H2 2018 to continue into FY 2019.”
Much of the optimism is based on the US, where it is expected that more states will legalise sports betting over the coming months.
Significant events expected on Friday March 29:
Interims: CVS Group PLC (LON:CVSG)
Finals: GAN PLC (LON:GAN), Chesnara Plc (LON:CSN), Cathay International Holdings Ltd (LON:CTI)
Economic data: Nationwide house price index; University of Michigan US final consumer confidence index; US Chicago PMI; US personal income, spending