Primark sales defy retail gloom

Sales are still growing at Primark

Discount fashion chain Primark has reported rising annual sales, despite the slowdown in consumer spending.

Primark's like-for-like sales - which strip out the impact of new stores - were up 4% in the year to 13 September.

The chain's performance helped Primark's parent company, Associated British Foods (ABF), to report a 3% rise in annual profits to £632m.

Operating profits at Primark rose 17% to £233m. The chain operates 181 stores in the UK, Ireland and Spain.

ABF said that it planned to open 12 new Primark stores in the coming year; four in the UK, one in Ireland and seven in Spain.

The company added that its grocery division - which includes brands such as Twinings tea and Ryvita crispbread - had seen operating profits rise 27% to £194m.

However, profits at its sugar division fell to £155m from £199m a year ago as a result of reforms to the EU sugar sector.

ABF said next year's earnings were expected to be little-changed because of higher interest costs.