PRIMARK owner Associated British Foods said the global recovery was underway, prompting it to predict a “very good” rise in annual earnings after beating forecasts with half-year profits up 20 per cent.
The London-based food and retail group reported strong momentum in many of its businesses around the world and even Britain showed signs of consumers trading up to more expensive products which helped to boost its shares to record highs.
“The global economic recovery is strongly underway, there are strong signs in the US and China is growing strongly,” chief executive George Weston said.
The upbeat outlook prompted earnings upgrades for the full year to mid-September. These were led by analyst Graham Jones at brokerage Panmure Gordon, which works as an advisor to ABF.
Jones raised his annual earnings forecasts by six per cent to 67.5p, pre-tax profits also by six per cent to £790m, to both show a rise of 21 per cent from the previous year.
City A.M. Reporter