Primark owner boosted by strong sales

Revenue at ABF rose 13 per cent on a constant currency basis and 20 per cent at actual exchange rates in the third quarter, driven by increased profitability at Primark.

The cut-price retailer benefited from strong Easter trading and its UK turnover is up 9 per cent in the year to date.

Overall, Primark sales are 13 per cent ahead of last year at constant currency, and 21 per cent at actual exchange rates.

ABF said in a trading update: “The results to date reflect a material translation benefit from the devaluation of sterling following the result of the UK referendum on EU membership in June last year.

“At current exchange rates, the translation benefit will be significantly less in the last quarter of our financial year.

“The underlying operating performance of the group during the third quarter was ahead of our forecast as a result of a stronger profit delivery from Primark which has marginally improved our group outlook for the full year.”

ABF, which also generates revenue in Asia, Europe and the Americas and also owns Twinings tea, Kingsmill bread and Silver Spoon, has benefited from sterling’s collapse following last year’s referendum vote.