Primark rides tough times with 8% sales rise

Associated British Foods, which owns the chain, said sales at its 196 stores had been stronger than it had expected in the six months to February. Sales were especially robust at its 14 Spanish stores.

Finance director John Bason said the performance had been "amazing" given tough conditions on the high street and a bitterly cold winter.

"Primark's momentum is improving, it's an amazing performance especially since January and February were hit by terrible weather in the UK and the current retail environment," he said.

AB Foods said it expected to open three more Primark stores in the UK in the coming months, and a further three in Spain.

The roll out of the chain, which provides around a third of the group's profits, will continue next year, after AB Foods acquired ten Bhs stores, including one in Perth, which will be transformed in the second half of the year.

The group, 55 per cent owned by the family of its chief executive George Weston, has recently been investing heavily in many of its operations, such as Primark and sugar, and analysts said this spending is starting to boost returns.

In recent months the company has opened stores in Germany, Portugal and Belgium.

AB Foods also reported strengthening trading at its branded foods business, which includes Twinings, Ovaltine and Patak's curry.

It said profits from its sugar division would be substantially ahead of last year, helped by strong European performance and a recovery in China, where prices have now risen to record levels.

Primark noted that its interim results, due to be released in April, would show a strong increase in revenues, with growth across the business.

Operating profits at the London-headquartered group are set to be "substantially higher" than the same period a year ago, except in its agriculture business which benefited from high volatility in 2009.

Shares in AB Foods hit the highest level since May 2007 early yesterday, but later dropped, closing 3p lower at 934p.