Intercontinental sounds cautious note

Intercontinental Hotels has seen its third quarter pre-tax profits rise, but remains cautious about the future – warning that North America has still to see a “sustainable upturn” and that conditions in Europe remain “difficult.” Pre tax profits for the quarter to September 30 increased 13.4% to £93 million, up from £82 million 12 months previously. Overall sales increased 5.4% to £569million. But much of the gain was due to the good performance of its soft drinks division due to this summer’s hot weather. The hotel business performed less well, with turnover up just 0.5% at £387million. Chief executive Richard North said: “Trading around the world is something of a mixed bag. We are seeing the beginning of a recovery in the UK but conditions in Europe remain difficult. Asia Pacific has proved enormously resilient with trading now close to pre SARS levels. Finally, North America appears to be at the turning point but we are not yet convinced that a sustainable upturn has begun.   “We have achieved a great deal, albeit much remains to be done. Nonetheless we are well placed to benefit from the recovery when it comes.”