Major clothing store Primark is paying back the 121 million of furlough funding, including 72 million to the Government. This is due to unprecedented sales in the first opening weeks since Primark were able to reopen.
ABF Chief Executive George Western explained that the payments, which protected the jobs of 65,000 employees across Primarks Global Estate, will be made as the stores make money again.
Queues formed at Primark stores around the country, a trend that has continued since they opened a week ago. The demand has set records at more than one store around the country, and the popularity of the clothing chain is yet to cease.
Associated British Foods (ABF), the company who owns Primark, made the announcement following the half year results. The Company expect at least 68% of Primark’s across the country to be open and selling by the end of April.
Chris Beckett, Quilter Cheviot’s head of equity research the results were clear. Primark was always going to benefit from reopening, especially as they had lost £3 billion in sales during lockdown. The pictures of queues they are seeing shows the strong demand for low cost clothing.”
Primark Shareholders will receive a payout too, despite ABF profits down
ABF, which owns major sugar, grocery, agriculture and ingredients businesses, has announced an adjusted profit of £319 million between August and February 27th. This is down over £600 million from the same time last year.
A lot of the 17% Group Revenue fall was put down to Primarks being forced to close. The closure resulted in a 90% slump in their operating profits.
Despite shares falling 3% at the open, Primark Shareholders have secured an interim dividend of 6.2p a share worth £49m.
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