Primark spurs on ABF’s growth

Source: Stock Market Digital

Date :07/11/2007 09:31:55

The discount fashion chain reported a 20 percent rise in profits yesterday, helping push up parent group Associated British Food’s profits by 17 percent

Expansion

Primark, now the second largest fashion chain in the UK, this year moved in to 41 stores previously occupied by Littlewoods. Its Oxford Street store, opened earlier this year, sold more than one million items of clothing in its first 10 days of trading.

However Associated British Foods, Europe’s fifth largest food company which also owns British Sugar and Hovis among others, warned that rising costs were hitting profits and growth at Primark would slow accordingly.

Chief executive George Weston commented on the results, saying:

“This year’s strong growth in revenue and operating profit reflects the recent major investment made by the group in capital expenditure and acquisitions. The scale and range of our sugar activities are being transformed and Primark is now the second largest clothing retailer in the UK by volume.

Confident

“Our grocery business was strengthened with the acquisition of Patak’s, and Agriculture and Ingredients performed well. I am very encouraged that the considerable progress made places us well for growth in the future.”

ABF is controlled by the Weston family, which owns 54 percent of the group.

November 7, 2007