Connect with us

Hi, what are you looking for?

Investing

Primark to repay £121 million in furlough cash despite falling sales

Primark

Primark’s owner will repay £121 million in furlough money claimed under government job retention schemes and pay out a dividend to shareholders despite a slump in profits.

Associated British Foods (ABF) said the decision comes despite stores remaining closed for most of the autumn and winter period, leading to revenues and profits plunging.

Sales were down 17% to £6.3 billion and adjusted operating profits fell 50% to £319 million in the six months to February 27.

Chief executive George Weston said the repayments would be made as he was confident stores will become cash generative following the easing of restrictions in England and Wales, where 40% of Primark selling space is located.

He said: “We are excited about welcoming customers back into our stores as the lockdowns ease and are delighted with record sales in England and Wales in the week after reopening on 12 April.

“With our success in a number of new markets, as wide-ranging as Poland and Florida, we are as convinced as we have ever been in the long-term growth prospects for Primark.”

On the furlough scheme, he said the company claimed £98 million during the previous financial year to support Primark’s 65,000 workforce.

“A further £79 million was claimed in the six months to February 27 and up until today the amount is now £121 million, the company said.

Chairman Michael McLintock added: “Although uncertainty remains, a large proportion of the UK adult population has now been vaccinated and last week we saw the successful reopening of Primark’s English and Welsh stores which represent some 40% of our total retail selling space.

Read more:
Primark to repay £121 million in furlough cash despite falling sales

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

TOKYO — Japanese financial institutions are struggling to put a price tag on the cost of climate change, an effort made difficult by the long timeframe...

Economy

An indigenous group in the Canadian province of Saskatchewan on Thursday said it had found the unmarked graves of an estimated 751 people at...

Economy

A plan by India to build digital databases of farmers to boost their incomes has raised concerns about privacy and the exclusion of poor...

Investing

About 10% of Poundland products are no longer priced at £1, the discount retailer has said. Poundland moved away from pricing everything at £1...

Investing

The BT-owned mobile operator EE is to start charging UK customers to use their phones in Europe, having previously said it had no plans...

Investing

Government plans to restrict junk food advertising on television and online have been criticised by campaigners who say they contain too many exemptions to...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!