ABF cautious on consumer spending

Charles Sinclair, chairman of the Twinings Tea to Silver Spoon sugar manufacturer, which also owns the budget high street fashion store Primark, told the company's annual meeting that trading results for the first two months of the new financial year were in line with expectations. However, he went on: "We remain cautious over the uncertain economic outlook for western economies and the possible impact on consumer spending. We have seen, recently, significant increases in some commodity prices. Higher sugar prices are expected to improve our sugar profitability, we aim to recover higher wheat costs, and higher cotton prices will have some impact on Primark's margins as a result of its continued commitment to offer the best value on the high street. "We continue to invest in the development of our businesses and further returns will be delivered as these investments complete. Last year saw a step change in the group's profitability and we expect to achieve revenue and profit growth in the current year."