ABF to expand Bury plant

OVALTINE to Primark owner Associated British Foods said today it is extending operations at its Bury packaging plant.

The group, which also own Lancashire-based Patak’s, said the move will follow the closure of its Newark plant, and transfer of operations to Bury will complete in the autumn.

The group revealed the plans as it reported on trading ahead of its full year results which will be announced on November 3.

It said that trading for the group since the half year has been strong, resulting in an increase in adjusted operating profit for the second half compared to last year.

The group added that although the interest charge will be substantially higher, it now expects some progress in adjusted earnings for the full year.

ABF said its UK grocery businesses made further progress led by a strong performance from Allied Bakeries with increased margins from further improvements in operations.

Twinings Ovaltine continued to deliver growth, particularly from Ovaltine in its developing markets, and from high consumer demand for Everyday tea.

Silver Spoon benefited from increased demand for home baking ingredients which, combined with distribution gains, resulted in higher sales and market share across the Silver Spoon sugar and Allinson flour range.

Elsewhere, ABF said sales and profit at Primark will again be well ahead of last year. It expect to have opened six new stores in the second half which will bring the total number of stores to 191 by the year end.

Like-for-like sales growth of 7% is expected for the full year driven by a very strong performance in the UK.