Primark, the discount fashion chain, has continued defy gloom on the high street, with sales up 20 per cent in the year to date.

Associated British Foods, Primark's owner, said that the strong sales increase was due to "excellent like-for-like sales growth". Sales were also helped by a programme to expand and refurbish stores.

Primark's sales rose 20 per cent in the 40 weeks to June 20 and 21 per cent in the third quarter.

This year Primark has opened its first outlets in Germany and Portugal and also opened a branch in Barcelona.

AB Foods said that Primark had achieved the growth despite the fact that "trading conditions in UK clothing retailing remain difficult".

Overall, AB Foods today posted a 15 per cent rise in sales for the third quarter, a period that covers the 16 weeks to June 20. For its financial year so far, or the 40 weeks to June 20, the group said that its sales rose 19 per cent.

The food and retailing business includes Silver Spoon sugar and Patak's and Blue Dragon, the ethnic food brands.

Silver Spoon's margins were lower than last year's level because "sugar pricing remained competitive in the UK retail market". Patak's and Blue Dragon delivered "double digit revenue growth" but their profits were hit by higher import costs.

AB Foods is majority-owned by the family of George Weston, the chief executive.

Overall, the group said trading remained on track to produce a rise in operating profit in its second half, and so still expected flat earnings for the full year to September as the profit increase would be offset by a higher interest charge.

In April, the company said that it expected a recovery in its second-half profits after a two per cent first-half profits dip as expensive forward contracts in the US vegetable oil market started to unwind.

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