Primark and sugar group Associated British Foods is among the day’s biggest risers after a positive update, despite warning on margins at its discount retailer.
At its annual meeting the company said it expected progress in earnings and operating profit this year. It said the good underlying trading from last year had continued.
At its sugar business, it expected to benefit from price increases and from cost cutting. Its grocery operations were also forecast to continue growing, and it was continuing its expansion of Primark in its major markets.
The slump in the pound since the Brexit vote would boost the translation of its overseas earnings, but with Primark buying much of its merchandise in dollars and having half its sales in the UK in sterling, its UK margins would be hit this year.
Even so, the company’s shares have jumped 2% to £27.17.
