Results round-up

First quarter sales from The Restaurant Group have improved significantly from the end of last year, but are still in decline and are expected to benefit from less helpful conditions as the year goes on.

For the 20 weeks from the end of January, like-for-like sales fell 1.8%, with total sales decreasing 1.5%. This compares to the 3.9% LFL drop last year and 5.9% collapse in the fourth quarter.

Speaking ahead of the FTSE 250 company's annual shareholder meeting chairman Debbie Hewitt said the period had seen strong performances from concessions in airports due to strong growth in passenger numbers, and from the gastro-pubs business amid the better recent weather.

"We continue to be focused on the turnaround of the Leisure businesses which benefited from cinema admissions having a good start to the year. Over the remainder of the year, growth in passenger numbers and cinema admissions is anticipated to moderate."

The leisure business includes chains including Frankie & Benny's, Garfunkel's and Joe's Kitchen and many are based in shopping and leisure parks including cinemas.

"The implementation of our strategy is progressing well as we make the required investments in price, marketing and our offer," Hewitt said, referring to transformation plans put in place by ex Paddy Power boss Andy McCue who was appointed chief executive last summer and has since carried out a review of the business.

On the outlook, Hewitt reiterated that 2017 is a transitional year but that cash flow and the balance sheet remain strong and that management continue to expect PBT for the full year will be in-line with current market expectations.

"We continue to address the competitiveness of our Leisure businesses and are focused on achieving a sustainable volume-led turnaround. Where opportunities to accelerate our progress present themselves, we will invest appropriately."

In March the company maintained the full year dividend and warned "it will take time" to turn around the business, before in April finance director Barry Nightingale left the company with immediate effect having only joined the firm last June.

Total quality assurance provider Intertek Group released a trading update for the period from 1 January to 30 April on Friday.

The FTSE 100 firm reported group revenue of £883.5m, up 14.2% at actual rates and 1.8% at constant rates, with "solid" organic revenue growth at constant rates, with products revenue up 5.8%, trade rising 5.0%, and resources falling 15.4%.

It claimed “good” performance of acquisitions in sectors with “attractive” growth and margin prospects, and described “operational discipline” on cost and margin management during the period.

Intertek also experienced “strong” cash conversion and disciplined capital allocation, the board said.

"In the first four months of the year, the group has delivered revenue of £883.5m, up 14.2% year on year at actual rates and up 1.8% year on year at constant rates, driven by solid organic growth of 0.9% and a good performance of the acquisitions we made in attractive growth and margin sectors," said chief executive André Lacroix.

"We are on track to deliver our 2017 targets of solid organic revenue growth at constant rates, with moderate margin expansion and strong cash conversion."

Lacroix said the products and trade-related divisions, which represented more than 90% of the group's earnings, delivered "broad-based" 5.5% organic revenue growth at constant rates while, as the board had expected, trading conditions continued to be challenging in the resources related division.

"The $250bn global quality assurance industry has attractive structural growth prospects driven by an increased focus of corporations on risk management, global trade flows, global demand for energy, expanding regulations, more complex sourcing and distribution operations, technological innovations, government investments in large infrastructure projects, and increased consumer demand for higher quality and more sustainable products.

"We are uniquely positioned to seize these exciting growth opportunities with our ‘total quality assurance value proposition that provides a superior service, offering global assurance, testing, inspection and certification solutions to our customers across multiple industries through our global network of over 1,000 state of the art facilities in over 100 countries,” Lacroix explained.

He said the company operated a "high quality" and "highly cash generative" earnings model.

"Our differentiated growth strategy will continue to move the centre of gravity of our portfolio towards the attractive growth and margin opportunities in the industry based on a disciplined approach to revenue, margin, portfolio and cash performance management, and an accretive disciplined capital allocation to deliver attractive returns for our shareholders."