Associated British Foods, the sugar-to-clothing group, said that store openings had “substantially” driven sales at its Primark discount clothing chain, sending the shares up more than 4 per cent.

ABF, which yesterday reiterated that it was on course to meet its full-year forecasts despite commodity price and currency fluctuations, said that like-for-like sales at Primark were flat in the first half.

Stripping out the impact of new stores, underlying sales were up 4 per cent, easing concerns that sales growth at the chain was cooling under pressure from rivals.

The company, which has opened 50 per cent additional space at Primark in the period, said that trading at the new stores was “encouraging”.

Shares in ABF gained 33p to 840½p yesterday, helped by news of a robust performance at its sugar business.

ABF, which makes Silver Spoon sugar, Ovaltine and Twinings tea, said that profits from its sugar operations were “strongly ahead” of last year in the first half. A bumper crop in China, and a contribution from Illovo, the African sugar producer it took a majority stake in last year, offset lower profits in the UK.

Investors failed to be deterred by a fall in profits at the company’s grocery division, as the bread market came under increased competition.

ABF said the recovery from last autumn’s wheat price increase had been delayed, while volumes were lower than expected. The company said it was confident a major relaunch of Kingsmill would boost sales in the second half.

Analysts responded positively to the results, in particular to the robust growth at Primark and the sugar division.

However, Credit Suisse, the house broker, trimmed its pretax forecast for the year by £4 million to £617 million to see 10.4 per cent growth, due to foreign exchange changes, yet it said the trading update was consistent with its expectations.

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