The owner of the clothing chain Primark, Associated British Foods (ABF) has said the clothing chain performed strongly in recent times, the owner is expecting a growth of at least 6% in its annual sales in this year.

The owner ABF has said the strong growth in sales was driven by strong performance of the company in the UK and in all European countries.

The strength of pound against dollar had also benefited the company where the materials were bought in dollar. Meanwhile the company warned that the increasing VAT rate in the UK and the higher cotton prices would affect the margins of the company. The clothing chain Primark continued to expand in the critical global economic conditions.

ABF has plans to open eight new Primark stores by the end of this year which include five stores in the UK and three stores in Spain. There are other business of the firm which includes the Allied Bakeries of UK and the Silver Spoon sugar. The forecast for sales growth has been made for the year to the end of this September.