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  • Nov 9th, 2005
  • Comments Off on AB Foods profits rise, sees more progress ahead
Associated British Foods, the maker of Silver Spoon sugar and owner of Premark discount clothes stores, reported a 12 percent rise in annual profits and said it sees further overall progress in the coming year.

The London-based food and retail group, said on Tuesday pre-tax profit increased to 590 million pounds ($1.03 billion) in the year to September 17 in line with analyst forecasts of 584-593 million pounds.

It proposed a full-year dividend of 18.0 pence a share, up 10 percent from 16.4p the previous year.

The company, which also owns Twinning tea and Ovulating, posted an 18 percent rise in year operating profit. It said in September that it expected second-half operating profit growth to be almost as strong as the first half's 18 percent.

"We expect further overall progress in group results in the coming year," the company said in a statement. The star performer was its 122 Premark stores, with profits 30 percent ahead on the back of a 17 percent in sales.

It confirmed second-half like-for-like sales growth at around 12 percent, bringing full-year growth to 9 percent.

Premark has grown rapidly to account for nearly a quarter of group profits, but some analysts worry a fire at its main UK warehouse last week and a weak UK retail background may tarnish Premark in the run up to Christmas.

Shares in AB Foods, 55 percent owned by the family of Chief Executive George Weston, have risen 3.5 percent this year but have underperformed the FTSE 100 by nearly 10 percent.

The stock closed on Monday at 816-1/2p, valuing the group at just over 6.4 billion pounds.

Copyright Reuters, 2005


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