Primark profits up by 10%

A FIRST-class performance by Primark, which trades as Penneys in Ireland, sent operating profits in the six months to the end of February jumping 10% to £122 million (e138m).

After a better than expected Christmas, revenues increased 18% to £1.06 billion.

“Against a background of continued tough trading for UK clothing retailers, this was a first class performance which serves tounderpin delivery of our forecast for the full year,” the company said.

Primark, which is owned by Associated British Foods (ABF), increased its selling space to 187 stores in the period.

ABF does not split-out the performance of its 37 Penneys outlets in the Republic from the Primark brand. The retailer opened three stores in Spain, two in Britain and its first Dutch outlet in the period.

Chief executive George Weston warned that Primark’s operating margins may fall in its second-half to September 2009 after sliding in its first-half to 11.5% from 12.3% due to extra costs from a newly opened British distribution centre in eastern England.

ABF reported first-half operating profit that beat analyst estimates on a high-yielding sugar crop.

Operating profit was £297m (e336.7), while revenue climbed 18% to £4.37bn.(e4.95bn)