ABF in line for profits growth

In a trading statement, the Silver Spoon to affordable fashion group reported good profits growth driven by its Primark, grocery and agriculture operations that would more than counter a decline in profit from sugar operations. Lower sugar profit was primarily the consequence of reform of the EU sugar regime but also reflected depressed sugar prices in China as a result of a record crop. ABF said the agriculture division continued the excellent performance delivered in the first half. UK animal feeds performed well and its strong position in grain trading and increased demand for farm inputs drove further sales growth. Grocery revenue and profit was strong in the second half with further improvement from Allied Bakeries and some recovery at ACH, the North American vegetable oil and consumer products business. Sales and profit at Primark will again be well ahead of last year with eight stores opening in the second half of the year - five in Spain and three in the UK - bringing the total to 181 stores. A major new distribution centre at Thrapston, Northamptonshire is also being opened.