Despite some testing conditions in a number of its markets, blue chip inspection, product testing and certification group Intertek PLC (LON:ITRK) should provide a reassuring trading update on Friday.
In a preview, Graham Spooner, Investment Research Analyst at The Share Centre said: “We have long liked this low profile company who are now trading at an all-time having generated strong sales and earnings growth both organically and through acquisitions.
“The global quality assurance market continues to grow as a result of increasing regulatory, quality and safety standards in both developed and developing markets.”
READ: Intertek Group raises full year dividend as it sounds confident outlook on revenue
He added: “Consensus expectations are that last year’s momentum has followed through in the first quarter and we will continue to the see the benefits of sterling’s weakness.
“The Resource division however faced a tough year so it will be interesting to see if there has been any improvement in infrastructure investments in the commodity sector.”
Restaurant Group not looking so tasty
Meanwhile, on the second line, trading news from Restaurant Group PLC (LON:RTN), owner of the Frankie & Benny's (F&B) and Garfunkel’s brands, is likely to be cautious.
Back in March, the company reported an 11% drop in full year pre-tax profits to £77mln and a 3.9% decline in like-for-like sales as it restructured the business and revamped its restaurant menus.
Analysts believe the first-quarter could show a 6% to 7% drop in like-for-like sales as the group continues to work on its menus.
On Tuesday, Swiss broker downgraded its rating for Restaurant Group to ‘sell’ from ‘neutral’ on its analysts view that that “the turnaround for F&B looks challenging based on changes implemented so far.”
READ: UBS downgrades Restaurant Group to ‘sell’ from ‘neutral’
They pointed out: “After its recent menu launch, we have analysed the new F&B proposition along with 20 key competitors, with our analysis indicating that, while prices have fallen (c.6% on average), a value gap remains versus the branded pub chains which are on average 22% cheaper.“
US GDP revision awaited
On the data front, after yesterday’s downgrades revision to UK first-quarter GDP numbers, investors could be cautious ahead of the second reading for US first-quarter growth this afternoon.
The initial annualised growth rate of 0.7% meant the US economy grew at its weakest pace in three years at the start of 2017.
Aside from the GDP data, the latest US durable goods orders and final May reading for the influential University of Michigan consumer sentiment index will also be eyed today.
Significant events expected on Friday May 26:
Trading Statements: Intertek Group PLC (LON:ITRK), Restaurant Group PLC (LON:RTN), Spectris plc (LON:SXS)
Interims: MedicX Fund Ltd (LON:MXF)