InterContinental Hotels, Interserve and Hastings

The blue chip index drifted into negative territory ahead of today's US jobs figures, with Wall Street maintaining a holding pattern overnight and stocks in Asia trending lower this morning.

“Holiday Inn owner InterContinental Hotels beat forecasts with revenue per room up 1.5% in the first quarter,” says AJ Bell Investment Director Russ Mould.

“InterContinental Hotels has been signing rooms into its portfolio at the fastest rate since 2008 and strengthening its position in the rapidly growing boutique segment. It has also launched a loyalty programme with preferential rates for members who make direct bookings.

“Support services and construction group Interserve’s shares plummeted after it warned it would take a £70m hit due to delays on its Glasgow waste-to-energy contract. Investors could find little solace in its trading update with the group warning that net debt will be around £35m higher than previous guidance. The outlook for the UK construction division as a whole has been significantly adversely affected by continuing problems with the Glasgow contract which will result in further cost overruns. 

“Motor insurer Hastings has hit targets it set at its flotation in October with its market share rising to 6% in the first quarter from 5.3% a year ago. Gross written premiums were up 29% and net revenues increased by 22% with the group’s agile, data driven business model continuing to drive profitable growth.”

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