Business

Restaurant Group shares dive 26%

London stock brokers (file photo) Image copyright AFP

(Close): Shares in Restaurant Group dived more than 25% after the owner of Chiquito and Frankie & Benny's cut its full-year profit forecast.

Shares fell 99p to 275p after the FTSE 250 firm said it had seen "a further deterioration in trading conditions".

It now predicts sales will fall by 2.5%-5%, and expects full-year profits to be between £74m and £80m.

Restaurant Group added its chief financial officer, Stephen Critoph, was leaving with immediate effect.

The FTSE 100 closed 80 points, or 1.3%, lower at 6,241.89 points.

BA owner IAG was one of the the biggest fallers in the FTSE 100, with its shares down 4.7%. The airline group said it was slowing its growth plans after it saw weaker demand following the Brussels terror attacks.

The company - which also owns Iberia, Aer Lingus, and Vueling - also said it had seen weaker demand for its lucrative business and first class seats.

Royal Bank of Scotland was the biggest loser on the last trading day ahead of Monday's bank holiday, ending down 6% at 230p after the bank's first quarter losses more than doubled to £968m.

The bank said the widening loss was mainly due to a one-off dividend payment of £1.2bn to the UK government. Operating profits rose to £421m for the quarter, up from just £37m in 2015.

On the currency markets, the pound edged up 0.1% against the dollar to $1.4627, but fell 0.3% against the euro to €1.2828.