Primark performance boosts ABF

<p>Primark’s excellent performance has helped boost ABF’s first half results.</p>

ABF (Associated British Foods) has been given a boost by its budget fashion retailer Primark.

According to the company, the low-priced clothing outlet's "outstanding performance" is expected to accelerate its total sales for the six months to March 2nd by 23 per cent.

Like-for-like sales, which strip out new store openings, are set to be seven per cent higher, while profit margins are due to rise thanks to lower cotton prices and better trading.

In its report updating the market on trading ahead of its first-half results, ABF pointed to "exceptionally strong" sales at Primark, while the first half of the year has proven to be "extremely active" for new stores, with 15 shop openings in the UK, Germany, Austria, Holland and Spain.

At 16:45 GMT, ABD shares dropped by 0.6 per cent to 1819.00p.

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