PART OF THE WEEK: All eyes are on Primark’s results

As Marks & Spencer appears to be getting its mojo back, the Primark owner will reveal how he’s doing when he releases his latest update next week.

Associated British Foods, which owns a host of brands including Silver Spoon, Ryvita, Kingsmill and Twinings, as well as the High Street fashion chain, has seen its shares rise 25 percent this year and almost 60 percent since bottoming in September last year. year.

So investors will be hoping for more cheers at the full-year trading statement on Tuesday.

Following an upgrade to the outlook at the third quarter update in June, City analysts have estimated annual profits of £1.47 billion, up slightly from £1.4 billion a year earlier.

Sales are expected to rise 17 percent to £19.9 billion.

But according to Russ Mold of investment platform AJ Bell, “any guidance for the fiscal year to September 2024 is likely to be even more important.” Profits are expected to rise to £1.65 billion next year, while revenues will reach £20.8 billion.

Primark, as always, is likely to grab the most attention, and first-half trading was better than many thought as shoppers continued to splash out. That said, customers, analysts and investors alike will be curious to see how much Primark plans to increase prices to protect margins as the cost of doing business soars.

“Management doesn’t want to push prices up too far,” Mold said.

There will also be interest in the High Street retailer’s move to click-and-collect as it delves into the world of online retail.

However, the stores remain the bread and butter, and the chain is expanding across Europe and into the US.

Aarin Chiekrie, equity analyst at investment platform Hargreaves Lansdown, says cash flow will also be crucial as it is “likely to have a direct impact on the group’s ability to fund future dividends and share buybacks”.

“There are no shareholder returns guaranteed,” he adds.