Quinnsworth adds to ABF profitability

RECORD sales and profits achieved by the Quinnsworth supermarket chain in Ireland made a significant contribution to the 18 per cent growth in interim profits to £198 million sterling at parent company Associated British Foods.

But the group's Stewarts supermarket chain, taking in West Side stores in Northern Ireland, has continued to face difficult trading conditions, with increasing competition from the Fitzwilton owned Wellworth, Marks & Spencer and the co ops.

Financial details are not revealed for Quinnsworth and sister chain Crazy Prices for the six months to March 2nd.

However, ABF indicated that the record profits earned by its retailing activities in the Republic were £6 million higher than in the same period last year.

Food analysts at Merrill Lynch estimate that the Irish retailing profits of Quinnsworth and Crazy Prices surged to around £29 million on sales of £435 million.

Overall, ABF's retail companies lifted profits 55 per cent to a record £34 million sterling on turnover up nearly 10 per cent at £710 million.

As usual, the interim dividend is unchanged, with boardroom decisions on any increase in total dividend payout delayed until the full year figures. Mr Garry Weston, chairman of ABF, emphasised that the group's retail companies had maintained the profit growth achieved in the March August period last year when Quinnsworth consolidated its recovery from the price war with Dunnes.

In the food retailing companies, market share has been maintained in the Republic but is marginally down in Northern Ireland, he said. Results at Primark, the group's textile retailing business in Ireland and the UK, recovered from last year's disappointing levels and the integration of 15 acquired outlets in Britain is "on plan", said Mr Weston.

ABF shares rose 9p to 420p on the interim figures. The 18 per cent improvement in first half profits to £198 million was better than expected by analysts, with forecasts ranging up to £190 million.

Ahead, Mr Weston warned shareholders that it was unlikely that second half results would maintain the growth rate achieved in the first half.