Updates & Ideas

Associated British Foods - Primark eyes terrific US growth potential

August 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

In spite of the aggressive interest rate hikes over recent months, the UK High Street has illustrated more resilience than the doomsayers expected with Boohoo and ASOS stabilising and Next raising its forecasts. Another company that’s just put out a stronger than expected update is Associated British Foods (ABF), best known for its ownership of fast fashion clothing chain, Primark. ABF’s sales rose 16% in the three months ending 27 May while there are signs that some costs, notably sea freight and energy, are expected to fall giving broker Credit Suisse the confidence to put out punchy (and slightly upgraded) forecasts with eps in the three years to September 2025 of 132.6p, 156.3p and 176.2p. ABF was founded in 1935 by the Canad ...

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Associated British Foods (July 2016)

Associated British Foods - Primark sales rise 15% (March 2015)

Associated British Foods - Primark lifts share of profit from 42% to 57% (January 2015)

Associate British Foods (September 2014)

Associated British Foods - Primark to open in U.S. (July 2014)

Associated British Foods - Discount clothing chain Primark driving up shares (March 2014)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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