Primark continues to wow as sales grow again

By James Hall, Retail Editor Published: 6:45AM GMT twenty-three Feb 2010

The tradesman pronounced on Monday that sales were "substantially ahead" of last year over the 6 months to Feb 27.

"This outcome was all the some-more substantial since the clever analogous duration last year," the association said.

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John Bason, ABF"s monetary director, attributed Primark"s clever opening to the really select and well labelled clothes. The association trades from 196 stores in the UK and Ireland, Spain, Germany, Portugal and Belgium. It not long ago paid for 10 Bhs stores that will be refitted and non-stop over the subsequent year, adding a little 300,000 sq ft of offered space.

Analysts pronounced that Primark is the valuables in the climax of ABF"s empire, that additionally comprises Twinings tea and Silver Spoon sugar.

Clive Black, researcher at Shore Capital, said: "We hold that Primark represents a substantial store of worth for ABF. Strong pan-European attire bondage capture high multiples [of value] for example, H&M and Inditex. With Primark"s large freehold bottom and immaturity, it is arguably scratching the aspect of continental Europe with a supply sequence that has nonetheless to follow the stores."

Mr Bason pronounced that ABF is gratified with Primark"s opening and has no plans to sell or turn off the chain.

"I have seen Primark rise over the past 10 years. ABF is a illusory primogenitor to Primark; it has since really clever await to a clever government team. We have had the monetary wherewithal to behind it," pronounced Mr Bason.

"I think Primark is the success it is and the distance it is due to ABF"s parentage. Why would you shift that?"

ABF pronounced that the halt formula on Apr twenty will show a "strong increase" in income "with expansion completed in all segments". The organisation pronounced that handling distinction will be "substantially higher" than in the analogous duration last year in all segments solely the cultivation division, where marked down sensitivity in UK pellet markets was ensuing in less trade activity. Analysts at Panmure design the organisation to inform initial half pre-tax distinction of �315m, up from �275m last year.

First-half cash-flow is approaching to be improved than the same duration last year. Net debt will be close to the �1.14bn turn of the same time last year.

The association will take a �19m revolution assign at Twinings, where it is in the routine of shutting down a room in Newcastle and opening new ones overseas. Mr Bason pronounced that the association is opening new make-up plants in China and Poland. Its UK plant in Andover will remain. Around 250 jobs will be influenced by the Newcastle closure. ABF is now in conference with staff.

Shares in ABF fell 3 to 934p.