Primark owner ABF has 'dedicated team' looking at consequences of Brexit

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Primark proprietor Related British Meals (LSE: ABF.L - news) says it has had a devoted staff working for months on Brexit because it introduced a gross sales improve regardless of robust circumstances.

The FTSE-100 mother or father firm of Primark stated it had been "actively partaking with quite a few Authorities departments" on the "alternatives and dangers" introduced by the UK's departure from the European Union.

ABF chairman Charles Sinclair stated: "The results for the group of the choice by the UK to go away the EU must be seen within the context of the range of our operations and geographical footprint, mixed with a enterprise mannequin that wherever potential aligns meals manufacturing with the top markets for our merchandise and a discrete UK provide chain for Primark.

"However, we have now had a devoted workforce working for a lot of months to find out the results of Brexit for us, and our companies at the moment are working to grab the alternatives and mitigate any dangers.

"We're actively partaking with a lot of Authorities departments to make sure that these alternatives and dangers are recognised."

His phrases got here as the corporate introduced UK like-for-like gross sales for Primark have been up by 2% within the 24 weeks to four March.

Among the many causes for this was the opening of 16 new shops in eight nations throughout that point, the corporate stated.

However there have been additionally warnings concerning the future: revenue margins at Primark have been squeezed by the robust greenback pushing up prices and that is anticipated to worsen within the second half.

ABF is an uncommon member of the FTSE-100, with most of its shares held by a car owned by the Weston household, and with exterior buyers relentlessly supportive‎ of its mini-conglomerate construction.

In addition to Primark and its sugar enterprise, which incorporates the Silver Spoon model, ABF owns a variety of grocery merchandise, resembling Patak's, Ryvita, Jordans, Ovaltine and Twinings.

It additionally has a big components enterprise and a division supplying technology-based merchandise to farmers and meals producers.

ABF stated adjusted working revenue was up 36% to £652m for the primary half of its monetary yr to four March, including that its outlook for the complete yr had improved.

Shares (Berlin: DI6.BE - news) rose about three% initially earlier than erasing a few of these features to shut up 1.three%.

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