ABF reports strong trading

ABF said trading for the group since the half year had been strong resulting in a substantial increase in profit for the second half compared to last year with earnings for the full year set to "show very good progress". Higher levels of capital expenditure also continued, driven by new stores for the Primark budget fashion business, the construction of a new meat factory in Australia, the Vivergo biofuels plant in Hull and sugar capacity expansion in Swaziland, all of which will be commissioned next year. Sugar factory capacity expansion in Mozambique is complete and yeast and yeast extract capacity expansion at Harbin in China is in the process of commissioning. In the UK, the beet sugar business will deliver a very good second half result, following an excellent first half campaign, ABF said. The agriculture arm will see feed revenues ahead of last year while the grocery division has the UK's Allied Bakeries enjoying "considerable success" with its Little Big Loaf, which was launched last autumn. Twinings Ovaltine maintained sales and profit growth. Elsewhere in the group, Silver Spoon sugar benefited from increased demand for home baking ingredients, Westmill Foods increased profit, despite continued declines in the Indian and Chinese restaurant trade, with improved market share in the UK ethnic food market, and sales and profit at Primark will again be well ahead of last year.