Shares in London are up a little but momentum is lacking as we head into the weekend.
IC TIP UPDATES:
Shares in Restaurant Group (RTN) were up nearly 10 per cent after a trading update revealed like-for-like sales had slipped 1.8 per cent with total sales down 1.5 per cent. A good start to the year for cinema admissions helped the leisure division, while growth in passenger numbers benefitted the concessions business and good weather got people out to their pubs. Management warned that passenger numbers and cinema admissions are expected to moderate in the remainder of the year but added that the group is on track to deliver profit before tax for the year end. The turnaround strategy for its struggling core leisure business appears to be on track with Frankie & Benny’s rolling out new menus, which should improve volumes by year end. Buy.
Safecharge International (SCH) has announced a partnership with card processor Chase in the US, allowing customers to accept card payments in the country at domestic rates and with greater likelihood of a transaction being accepted. The share price has risen less than 1 per cent in early trading. Buy.
KEY STORIES:
Shares in Intertek (ITRK) were down slightly in early trading following release of its latest trading statement. Revenue was up 1.8 per cent in constant rates due to a combination of organic growth and acquisitions. The products and trade divisions were up in the quarter by 6.3 per cent and 7.6 per cent respectively, but challenging trading conditions dogged the resources division, which saw a 15.4 per cent drop in revenues at constant currency. The group warned conditions were expected to remain challenging and that they “do not believe we have reached the trough”. Hold.
Arena Hospitality Group, subsidiary of PPHE Hotel Group (PPH), has listed on the Official Market of the Zagreb Stock Exchange raising HRK788,362,675 (£92.2m). PPHE’s stake in Arena will drop from a 77 per cent holding to a 52 per cent controlling interest as a result of the new shares. The money raised will fund upgrades at existing properties and help the business expand into central and eastern Europe. Shares were up 1.4 per cent in early trading.
