Frankie & Benny's owner the Restaurant Group has reported a strong start to the current year with like-for-like sales up 4%.

Shares in the company, which today revealed a 2007 pre-tax profit of £43.5 million, up 24% on last time, rose 3p, or 2% in early trade to 149 pence.

While the company said it is encouraged by its performance in the light of tightening consumer conditions it warned it is not impervious to current economic factors.

The group, which focuses on out-of-town leisure parks, added that second and third quarter like-for-like hurdles are demanding.

The Restaurant Group said it is confident that socio-economic factors augur well for the industry and added it has benefited from the introduction of the smoking ban across England and Wales last year.

While there may be scope for further monetary relaxation in 2008, the company flagged a possibility of further taxation pressure as a result of UK's budget deficit.

As a result, management said it has factored a less favourable macro-economic backdrop into its planning for 2008 than experienced over the last five years.