Shares in Associated British Foods were given an 8 percent boost on Monday as it announced the re-opening of Primark stores and a general improvement in cash flow.
In a statement, Primark owner Associated British Foods revealed that as of today, 112 stores or 34 percent of its total selling space were currently traded.
However, the number of stores that will be open again will more than double by June 15th with – 281 stores being open, the equivalent to 79 percent of its total stores.
It will also push on with the previously planned opening of new stores in Belgium, Germany and a store in the Trafford Centre, Manchester.
Bargain hunters may be disappointed though as the group revealed it is unlikely there will be any special discounting on excess stock.
The scale of opening of stores by mid-June is expected to boost cashflow further as the Associated British Foods revealed that previous cashflow forecasts were based on assumption that all stores would not open until September:
“Our review at the half year of the cash flow forecast for the coming year evidenced the group’s strong cash liquidity, with considerable financial headroom. The cash flow forecast at that time was based on the conservative assumption that all Primark stores would not re-open until September. The current schedule advances the re-openings by some months and should deliver a much improved cash flow from trading in the second half of this financial year.”Associated British Foods – Covid-19 Update