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Primark opened 13 new stores in the year, including three in Spain, where it is bucking the slowdown

A jump in the margins of profit in the year at the end of September gave Primark "fire power" in the year to come, said John Bason, Director of Finance of Associated British Foods, which holds the retailer. "We will continue the best value on the high street", he said. " Some profit margin will be paid back.?

Thus an "exceptional" by Primark, where sales performance increased 18pc at ￡ 2 73bn year, Mr. Bason said that he welcomed the "broad improvement" across AB foods whose production of sugar, trade in grain and groceries such as bread of the Kingsmill and Twinings tea business.

Aim profit AB Foods rose 54pc 763 million from ￡, and sales grimpé 10pc ￡ 5.3 10.

Rising prices of raw materials is a "mixed" enterprise image, M. Bason said with AB Foods have to assume the Primark cotton price increase and to move prices higher for Kingsmill and other grocery products made from wheat.However, the company has benefited from sugar prices hit a maximum of 30 years, with the benefit of its sugar amounting to 43pc 240 m ￡ operating .hausse wheat prices has also give boost to its animal feed business.

AB Foods expects always declare an increase in sales and profit from this year, but declined to be more precise.

Primark, which is the largest division of AB Foods, operating profit increased 35pc 341 million books and margins expanded 10 9pc to 12 5pc .the ' company opened 13 new stores in the year whose three Spain Primark are bucking the slowdown in growth of sales 20pc.

Bason, said the Primark growth and the rest of the AB foods come from investment in the business rather than acquisitions in the near future.

Primark "invest wisely and positioning itself firmly in all of its companies, Investec analysts said." """See us room limited immediate improvements but expect a sense turn more positive market expands somewhat on Primark and warms up again in the history of sugar.

AB Foods rose p share 34 to ￡ 11.07.La company will pay a final dividend of 16.2 percent January 14, exit total balance for the year to 23.8%, an increase of 13pc by 2009.

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