Updates

Associated British Foods - Primark lifts share of profit from 42% to 57%

January 2015

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.

The shares have hit an all-time high of 3206p, following well-received final results with pretax profit rising 2% to £1,105m and eps increasing 6% to 104.1p. The star of the show was once again discount clothing retailer, Primark, which increased turnover 16% to £4,950m while profit jumped 29% to £662m. This was driven by a 4% increase in like-for-like sales, a 13% increase in selling space to 10.2m sq. ft. (including 25 new stores, 3 re-locations and 3 extensions) and superior sales density at the new stores. Operating margins rose from 12% to 13.4%, reflecting warehouse and distribution efficiencies, lower freight rates and reduced mark-downs.Investors are so excited about Primark’s future because it has s ...

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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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