| Associated British Foods PLC (GB0006731235) | |||
20,72 GBXStand (close): 03.07.25 |
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| 26.06.25 17:18:56 | Under-threat bioethanol plant says talks with Government a ‘positive signal’ |  |
| The UK’s largest bioethanol plant, which has said it could be weeks from stopping production following the recent US trade deal, has described the start of negotiations with the Government as a “very positive signal”. Hull-based Vivergo Fuels said on Thursday that, given “the strategic importance of a domestic ethanol supply”, the Government has committed to formal negotiations to reach a “sustainable solution”. But the firm, which is owned by Associated British Foods (ABF), said it is simultaneously beginning consultation with staff to wind down the plant, which employs more than 160 people, due to the uncertain situation – a process which could see production stop before September 13, if support is not provided. An ABF spokesperson said: “We are extremely pleased to be entering the next phase of formal negotiations with Government over the future of Vivergo. “We believe it is a very positive signal that Government recognises the strategic importance of a domestic bioethanol industry, and is serious about working with the sector to find a sustainable long-term future. “We look forward to engaging intensively and constructively with ministers over the coming weeks.” The statement added: “ABF cannot continue to absorb losses at the plant. That is why a timely solution is vital. “Our clear preference is to find that solution through this process and to get back to running a business that can thrive in the long term.” The firm said that “in parallel” it has entered into a consultation process with staff, which it said was a necessary step as there is no guarantee that the negotiations with Government will be successful. It said: “Our employees are our most important consideration, and we will engage with them properly and transparently about the future.The Vivergo Fuels site in Hull is the UK’s largest producer of bioethanol (Vivergo Fuels/PA) “Consultation is not a fixed outcome, and closure is not a certainty. “The outcome depends on the progress we are able to make through negotiations with the Government.” Last month, Vivergo wrote to the wheat farmers who supply it, telling them it will have to close unless there is quick Government intervention. It said the removal of a 19% tariff on US ethanol imports, which formed part of the recent UK-US trade deal, was the “final blow”. The bioethanol industry says the deal has made it impossible to compete with heavily subsidised American products. Vivergo said the Hull plant can produce up to 420 million litres of bioethanol from wheat sourced from thousands of UK farms. It described bioethanol production as “a key national strategic asset” which helps reduce emissions from petrol and is expected to be a key component in sustainable aircraft fuel in the future. Weiterlesen The firm said it has just signed a £1.25 billion memorandum of understanding with Meld Energy to anchor a “world-class” Sustainable Aviation Fuel facility at the site. It said the “potential ahead is enormous”, adding that “there is a real opportunity for Hull to be home to one of Britain’s most exciting clean fuel clusters”. The plant is also the UK’s largest single production site for animal feed and the company says it indirectly supports about 4,000 jobs in the Humber and Lincolnshire region. Following ABF’s announcement of a potential shutdown by mid-September, a Government spokesperson said on Thursday: “We recognise this is a concerning time for workers and their families and it is disappointing to see this announcement after we entered into negotiations with the company on financial support yesterday. “We will continue to take proactive steps to address the long-standing challenges the company faces and remain committed to working closely with them throughout this period to present a plan for a way forward that protects supply chains, jobs and livelihoods.” The Government said the bioethanol industry has been facing significant challenges for some time and officials and ministers have met with Ensus and Vivergo consistently over the last few months to address the challenges. It said both the business and transport secretaries met representatives from the industry on June 10 and engagement with the companies “will continue at pace” to assess potential solutions, with the help of external consultants. Kommentare anzeigen |
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| 26.06.25 12:27:00 | AB Foods Plans to Close Northern England Biofuel Plant After U.S.-U.K. Trade Deal | |
| The company said the commercial viability of Vivergo had been further undermined by the U.K.’s trade deal with the U.S., which allowed tariff-free U.S. ethanol into the U.K. Continue Reading View Comments |
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| 26.06.25 12:04:29 | Ministers race to save major fuel factory from closure | |
| Vivergo’s plant produces bioethanol, a renewable fuel, important for domestic production of sustainable aviation fuel - A.P.S. (UK)/Alamy Ministers are racing to save Britain’s largest bioethanol plant after the owner warned it would be forced to close the site without state intervention. On Thursday, Associated British Foods (ABF) said it had entered into last-ditch talks with the Government about securing support for its Vivergo Fuels business in Hull, which is losing £3m a month. Jonathan Reynolds, the Business Secretary, also confirmed he was engaging “in good faith” with the company and could commit taxpayer money to a rescue package. If the negotiations fail, ABF’s bosses have threatened to close the factory by Sept 13. The company has accused ministers of rendering its business unprofitable by awarding subsidies to rival American producers. Bosses had previously warned they would decide this week whether to close the plant, which makes bioethanol for blending into petrol and employs around 150 people. But ABF said it had entered “formal negotiations” about whether the site could be kept going. It is understood that the decision follows an intervention by Mr Reynolds. The Government’s offer to the company remains unclear. But ABF is demanding “short-term funding of Vivergo’s losses” as well as a longer-term deal to put its plant on a profitable footing again.Vivergo’s bosses have begun a ’consultation with employees to effect an orderly wind-down’ - Ian Davidson/Alamy In a move that piled further pressure on ministers, the company warned: “Given the outcome of the negotiations is uncertain, Vivergo is simultaneously beginning consultation with employees to effect an orderly wind-down.” The plant, which can produce 420,000m litres of bioethanol per year, had already stopped ordering wheat feedstock, it added. Losing the facility would leave the UK more reliant on foreign imports and dent ambitions for domestic production of sustainable aviation fuel. The chemicals sector is described as one of several “foundation industries” in the industrial strategy published by ministers on Monday. A spokesman for the Government said ABF’s latest ultimatum was “disappointing to see”, while Mr Reynolds described it as “premature”. Mr Reynolds told journalists: “We have secured a mandate across government to negotiate with them. “That means we’re willing to engage with them and potentially put government money into a restructure to make sure they’ve got a strong future. “We have met them many times. We’ve engaged the consultants and we’re well into the process. “Frankly, I really do regret the Vivergo’s decision to start consultations to let the workforce go and close the plant.” Only two plants in the UK make bioethanol, which is most commonly blended with petrol to make greener fuels such as E5 and E10. Story Continues The vast majority of production uses primary feedstocks such as sugar crops or wheat that are processed to yield fermentable sugars that are then converted into ethanol. Because the fuel is made from plants, it is regarded as renewable. But the Department for Transport has been accused of undermining domestic bioethanol producers by awarding green energy subsidies to American producers that make the chemical from waste, which is seen as more eco-friendly. ABF and domestic competitor Ensus say ministers then compounded the problem by striking a trade deal with the US that grants American bioethanol producers tariff-free access to the UK market. The trade deal has not yet taken effect but ABF says its plant in Hull is already unprofitable and cannot be sustained. It has already written £700m off its value. Ensus, which runs the country’s only other bioethanol plant, has similarly warned that its facility in Teesside is at risk. Previous talks between the companies and the Government had not made serious progress. But it is understood that Mr Reynolds and Heidi Alexander, the Transport Secretary, met company bosses on Tuesday and that the Government has brought in consultants to examine ABF’s proposed rescue package. ABF is asking for an end to the green energy certificates being awarded to American producers. View Comments |
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| 26.06.25 09:12:16 | UK’s largest bioethanol plant to shut in September ‘unless Government acts’ | |
| The UK’s largest bioethanol plant says it will stop production by mid-September unless the Government acts, following the recent trade deal with the United States. Hull-based Vivergo Fuels said that, given “the strategic importance of a domestic ethanol supply”, the Government has committed to formal negotiations to reach a “sustainable solution”. But the firm, which is owned by Associated British Foods (ABF), said on Thursday that it is simultaneously beginning consultation with staff to wind down the plant, which employs more than 160 people, due to the uncertain situation. The Government described the company’s announcement as “disappointing”, coming as it had entered into negotiations with Vivergo about financial support on Wednesday. The firm said in a statement: “Unless the Government is able to provide both short-term funding of Vivergo’s losses and a longer-term solution, we intend to close the plant once the consultation process has completed and the business has fulfilled its contractual obligations. “We would cease all manufacturing before the end of our financial year on September 13 2025.” The statement said: “In our interim results announcement on April 29 2025, we stated that the commercial viability of Vivergo, our bioethanol business, was being undermined by the way in which the UK Government was applying regulations to imported ethanol. “Since then, the situation has been made significantly worse by the UK’s trade deal with the US, which will allow tariff-free US ethanol into the UK. “ABF has engaged in extensive discussions with the Government to find a financial and regulatory solution that would enable Vivergo to operate on a profitable and sustainable basis. “Yesterday, our extended deadline for the Government to deliver that solution passed.” Last month, Vivergo wrote to the wheat farmers who supply it, telling them it will have to close unless there is quick Government intervention.The Vivergo Fuels plant in Hull employs more than 160 people (Vivergo Fuels/PA) It said the removal of a 19% tariff on US ethanol imports, which formed part of the recent UK-US trade deal, was the “final blow”. The bioethanol industry says the deal has made it impossible to compete with heavily subsidised American products. Vivergo said the Hull plant can produce up to 420 million litres of bioethanol from wheat sourced from thousands of UK farms. It described bioethanol production as “a key national strategic asset” which helps reduce emissions from petrol and is expected to be a key component in sustainable aircraft fuel in the future. The plant is also the UK’s largest single production site for animal feed and the company says it indirectly supports about 4,000 jobs in the Humber and Lincolnshire region. Story Continues A Government spokesperson said: “We recognise this is a concerning time for workers and their families and it is disappointing to see this announcement after we entered into negotiations with the company on financial support yesterday. “We will continue to take proactive steps to address the long-standing challenges the company faces and remain committed to working closely with them throughout this period to present a plan for a way forward that protects supply chains, jobs and livelihoods.” The Government said the bioethanol industry has been facing significant challenges for some time and officials and ministers have met with Ensus and Vivergo consistently over the last few months to address the challenges. It said both the business and transport secretaries met with representatives from the industry on June 10 and engagement with the companies “will continue at pace” to assess potential solutions, with the help of external consultants. View Comments |
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| 26.06.25 07:58:00 | AB Foods’ Bioethanol Business to Begin Wind-Down Consultation With U.K. Workers | |
| The company said the commercial viability of Vivergo had been undermined by the U.K.’s trade deal with the U.S., which allowed tariff-free U.S. ethanol into the U.K. Continue Reading View Comments |
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| 17.06.25 05:33:55 | Is Associated British Foods plc's (LON:ABF) Recent Performance Tethered To Its Attractive Financial Prospects? |  |
| Associated British Foods' (LON:ABF) stock up by 8.7% over the past three months. Given its impressive performance, we decided to study the company's key financial indicators as a company's long-term fundamentals usually dictate market outcomes. Particularly, we will be paying attention to Associated British Foods' ROE today. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. How To Calculate Return On Equity? The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Associated British Foods is: 13% = UK£1.5b ÷ UK£11b (Based on the trailing twelve months to March 2025). The 'return' is the profit over the last twelve months. Another way to think of that is that for every £1 worth of equity, the company was able to earn £0.13 in profit. View our latest analysis for Associated British Foods Why Is ROE Important For Earnings Growth? So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes. A Side By Side comparison of Associated British Foods' Earnings Growth And 13% ROE To start with, Associated British Foods' ROE looks acceptable. Even when compared to the industry average of 11% the company's ROE looks quite decent. This certainly adds some context to Associated British Foods' exceptional 25% net income growth seen over the past five years. We reckon that there could also be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. We then compared Associated British Foods' net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 11% in the same 5-year period.LSE:ABF Past Earnings Growth June 17th 2025 The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. Has the market priced in the future outlook for ABF? You can find out in our latest intrinsic value infographic research report. Story Continues Is Associated British Foods Using Its Retained Earnings Effectively? Associated British Foods has a three-year median payout ratio of 35% (where it is retaining 65% of its income) which is not too low or not too high. By the looks of it, the dividend is well covered and Associated British Foods is reinvesting its profits efficiently as evidenced by its exceptional growth which we discussed above. Besides, Associated British Foods has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 35% of its profits over the next three years. As a result, Associated British Foods' ROE is not expected to change by much either, which we inferred from the analyst estimate of 11% for future ROE. Summary In total, we are pretty happy with Associated British Foods' performance. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 14.04.25 22:01:01 | Yacktman Fund's Strategic Moves: Significant Reduction in Associated British Foods PLC | |
| Exploring the Yacktman Fund (Trades, Portfolio)'s Investment Strategy and Recent Portfolio Adjustments Warning! GuruFocus has detected 7 Warning Signs with XPAR:BOL. Yacktman Fund (Trades, Portfolio) recently submitted the N-PORT filing for the first quarter of 2025, providing insights into its investment moves during this period. The Yacktman Fund (Trades, Portfolio), under Yacktman Asset Management (Trades, Portfolio), seeks long-term capital appreciation and, to a lesser extent, current income. The Fund is non-diversified and mainly invests in common stocks of United States companies of any size, with some that pay dividends. The investment team aims to be objective, patient, and diligent, making investment decisions based on the merits of individual securities rather than trying to forecast the market. Yacktman employs a disciplined investment strategy, buying growth companies at what it believes to be low prices. Yacktman believes this approach combines the best features of "growth" and "value" investing. When they purchase stocks, they generally search for companies they believe to possess one or more of the following three attributes: be a good business, have shareholder-oriented management, and a low purchase price.Yacktman Fund's Strategic Moves: Significant Reduction in Associated British Foods PLC Summary of Sold Out Yacktman Fund (Trades, Portfolio) completely exited 4 of the holdings in the first quarter of 2025, as detailed below: Wells Fargo & Co(NYSE:WFC): Yacktman Fund (Trades, Portfolio) sold all 800,000 shares, resulting in a -0.84% impact on the portfolio. The Goldman Sachs Group Inc(NYSE:GS): Yacktman Fund (Trades, Portfolio) liquidated all 90,000 shares, causing a -0.77% impact on the portfolio. Key Position Reduces Yacktman Fund (Trades, Portfolio) also reduced positions in 21 stocks. The most significant changes include: Reduced Associated British Foods PLC(LSE:ABF) by 2,700,000 shares, resulting in a -67.5% decrease in shares and a -1.03% impact on the portfolio. The stock traded at an average price of 19.17 during the quarter and has returned 3.81% over the past 3 months and -1.86% year-to-date. Reduced State Street Corp(NYSE:STT) by 600,000 shares, resulting in a -40% reduction in shares and a -0.88% impact on the portfolio. The stock traded at an average price of $95.53 during the quarter and has returned -14.50% over the past 3 months and -16.21% year-to-date. Portfolio Overview At the first quarter of 2025, Yacktman Fund (Trades, Portfolio)'s portfolio included 51 stocks, with top holdings including 8.6% in Bollore SE(XPAR:BOL), 7.7% in Canadian Natural Resources Ltd(NYSE:CNQ), 6.28% in Samsung Electronics Co Ltd(XKRX:005935), 4.26% in Microsoft Corp(NASDAQ:MSFT), and 3.6% in Charles Schwab Corp(NYSE:SCHW). Story Continues Yacktman Fund's Strategic Moves: Significant Reduction in Associated British Foods PLC The holdings are mainly concentrated in 10 of all the 11 industries: Communication Services, Consumer Defensive, Technology, Energy, Industrials, Financial Services, Consumer Cyclical, Basic Materials, Healthcare, and Utilities.Yacktman Fund's Strategic Moves: Significant Reduction in Associated British Foods PLC This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus. View Comments |
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| 09.04.25 06:01:36 | Top UK Dividend Stocks For April 2025 | |
| As the FTSE 100 and FTSE 250 indices face downward pressure due to weak trade data from China, investors are increasingly seeking stability in dividend stocks to weather market volatility. In such uncertain times, companies with a strong track record of consistent dividend payouts can offer a reliable income stream, making them an attractive option for those looking to balance their portfolios amidst global economic fluctuations. Top 10 Dividend Stocks In The United Kingdom Name Dividend Yield Dividend Rating WPP (LSE:WPP) 7.61% ★★★★★★ Man Group (LSE:EMG) 7.95% ★★★★★☆ Keller Group (LSE:KLR) 3.82% ★★★★★☆ 4imprint Group (LSE:FOUR) 5.71% ★★★★★☆ DCC (LSE:DCC) 4.24% ★★★★★☆ Big Yellow Group (LSE:BYG) 5.13% ★★★★★☆ Grafton Group (LSE:GFTU) 4.33% ★★★★★☆ OSB Group (LSE:OSB) 8.23% ★★★★★☆ NWF Group (AIM:NWF) 4.64% ★★★★★☆ James Latham (AIM:LTHM) 7.82% ★★★★★☆ Click here to see the full list of 58 stocks from our Top UK Dividend Stocks screener. Let's take a closer look at a couple of our picks from the screened companies. Associated British Foods Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Associated British Foods plc is a diversified company engaged in food, ingredients, and retail operations globally, with a market capitalization of £14.12 billion. Operations: Associated British Foods plc generates revenue through its diverse segments, including Retail (£9.45 billion), Grocery (£4.24 billion), Sugar (£2.53 billion), Ingredients (£2.13 billion), and Agriculture (£1.65 billion). Dividend Yield: 4.6% Associated British Foods' dividend payments have been volatile over the past decade, despite recent growth. The dividends are well-covered by both earnings and cash flows, with payout ratios of 32.5% and 38.4%, respectively. However, its dividend yield of 4.6% is below the top tier in the UK market. Trading at a good value compared to peers and industry standards, ABF's earnings grew significantly last year but have an unstable dividend track record overall. Navigate through the intricacies of Associated British Foods with our comprehensive dividend report here. Our expertly prepared valuation report Associated British Foods implies its share price may be lower than expected.LSE:ABF Dividend History as at Apr 2025 Hill & Smith Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Hill & Smith PLC manufactures and supplies infrastructure products globally, with a market cap of £1.28 billion. Operations: Hill & Smith PLC generates its revenue from three main segments: Roads & Security (£238.60 million), Engineered Solutions (£418.70 million), and Galvanizing Services (£197.80 million). Dividend Yield: 3.1% Story Continues Hill & Smith's dividends are well-covered by earnings and cash flows, with payout ratios of 51.6% and 38.3%, respectively, yet the yield of 3.08% is lower than top UK dividend payers. Despite a history of volatility, dividends have grown over the past decade, including a recent increase to 49 pence per share for 2024. The company trades below its estimated fair value and seeks strategic acquisitions to enhance its portfolio quality. Delve into the full analysis dividend report here for a deeper understanding of Hill & Smith. The analysis detailed in our Hill & Smith valuation report hints at an inflated share price compared to its estimated value.LSE:HILS Dividend History as at Apr 2025 RS Group Simply Wall St Dividend Rating: ★★★★★☆ Overview: RS Group plc, along with its subsidiaries, distributes maintenance, repair, and operations products and service solutions across the UK, US, France, Germany, Italy, Mexico, and other international markets with a market cap of approximately £2.41 billion. Operations: RS Group plc generates revenue from its Own-Brand Products segment, which accounts for £404.70 million, and from Other Product and Service Solutions, contributing £2.53 billion. Dividend Yield: 4.4% RS Group offers a stable dividend yield of 4.37%, with payments well-covered by earnings and cash flows, supported by a payout ratio of 61.8%. The company's dividends have been reliable over the past decade, showing consistent growth. Recent strategic moves include becoming a key U.S. distributor for Siemens Process Instrumentation products and expanding its smart manufacturing solutions with Schneider Electric's Lexium portfolio, potentially enhancing future revenue streams and operational efficiencies. Unlock comprehensive insights into our analysis of RS Group stock in this dividend report. In light of our recent valuation report, it seems possible that RS Group is trading behind its estimated value.LSE:RS1 Dividend History as at Apr 2025 Seize The Opportunity Discover the full array of 58 Top UK Dividend Stocks right here. Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Contemplating Other Strategies? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LSE:ABF LSE:HILS and LSE:RS1. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View Comments |
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| 31.03.25 12:38:54 | Primark: Who is ex-boss Paul Marchant, and what has he done? | |
| Paul Marchant has resigned as the boss of high street fashion giant Primark following an allegation about inappropriate behaviour. The retailer’s parent business, Associated British Foods (ABF.L) (ABF), told investors about his exit on Monday morning. The chief executive admitted to an “error of judgment” after an investigation following an allegation from a woman. Here the PA news agency looks at who the businessman is and what we know about the incident: – Who is Paul Marchant? Mr Marchant was the chief executive of Primark – the 450-strong chain of fashion shops – until Monday. The 56-year-old is a veteran of the retail sector. He previously worked at a raft of major UK high street brands including Debenhams, Topman and River Island. Mr Marchant was also the chief operating officer for rival New Look before joining Primark in the same role.Paul Marchant speaking to the media in 2021 (Brian Lawless/PA) – How long has he been at Primark? The executive joined Primark in 2009 as chief operating officer under Primark founder Arthur Ryan, before succeeding him at the Dublin-based group later that year. – What has he done at the company? He is widely recognised in the sector for helping to drive the global expansion of the value fashion chain, particularly growing beyond its core markets in the UK and Ireland. The group doubled its estate to more than 450 shops under his stewardship and is on track to grow further, recently revealing plans for 530 shops by the end of next year. In the UK, the company’s budget position helped it to take market share in the fashion sector from more traditional rivals, such as Debenhams and Marks & Spencer. However, the company was knocked by the Covid-19 pandemic in 2020, which forced stores to close temporarily. Since this, the company has also had to manage sharp increases in its costs, as well as increased pressure from Asia-based rivals such as Shein and Temu who have focused on particularly low-priced offerings. Mr Marchant led Primark’s growth in mainland Europe, with dozens of stores across France, Spain, the Netherlands and other countries. The retailer has also rapidly grown in the US in recent years, with plans for 60 stores in the country by next year. – What do we know about the allegation against him? So far, the company has provided limited details regarding the allegation. It said the complaint was “made by an individual about his behaviour towards her in a social environment”. – How has the company responded? ABF launched an investigation into the allegation, which was carried out by external lawyers. Mr Marchant “cooperated with the investigation, acknowledged his error of judgement and accepts that his actions fell below the standards expected by ABF”, the company said. Story Continues Primark has more than 450 stores globally (Liam McBurney/PA) Primark said it will continue to offer support to the individual who reported the incident. George Weston, the chief executive and majority shareholder of ABF, said he was “immensely disappointed” by the allegation. “Colleagues and others must be treated with respect and dignity,” he added. “Our culture has to be, and is, bigger than any one individual.” – What does it mean for Primark? Primark has replaced Mr Marchant with ABF’s finance director Eoin Tonge as interim boss, working with the brand’s senior executives and strategic advisory board. Joana Edwards, ABF group financial controller, will replace Mr Tonge on an interim basis. Primark, which makes up almost half of ABF’s sales, brought in more than £9.4 billion in revenues in the 2024 financial year. ABF will reveal its financial results for the past six months in an update on April 29. In the most recent financial year, Primark saw sales grow on the back of its expansion, helping to boost the wider ABF group. However, in its Christmas trading update, ABF said Primark’s like-for-like sales dipped 6% in the UK and Ireland over the 16 weeks to January 4 amid pressure on customer finances. Analysts have said the incident therefore comes at a key time for the company as it seeks to stabilise its performance. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “This leadership upset comes amid weaker consumer sentiment which has meant footfall at its stores has fallen – and the chain has been losing market share in the UK. “Although Primark’s international performance was much better thanks to the group pressing ahead with its store rollout programme, there could be uncertainty ahead about the speed of expansion given the change of boss.” Meanwhile, Shore Capital equity analyst Darren Shirley said the upcoming results announcement is likely to “be well set” already. “We would also expect Primark to be progressing well at a group level, not being immune from a rather subdued British clothing market in the first quarter,” he said. View Comments |
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| 31.03.25 10:50:26 | Primark boss Paul Marchant resigns over inappropriate behaviour | |
| The boss of Primark has resigned after an allegation over his behaviour towards a woman. Primark’s parent firm, Associated British Foods (ABF), said Paul Marchant has stepped down as chief executive of the high street fashion brand with immediate effect following an investigation. It said the incident related to “his behaviour towards (a woman) in a social environment”. The company said Mr Marchant co-operated with the investigation, “acknowledged his error of judgment and accepts that his actions fell below the standards expected by ABF (ABF.L)”. “He has made an apology to the individual concerned, the ABF (ABF.L) board and also to his Primark colleagues and others connected to the business,” the firm added. ABF stressed that it will continue to offer support to the individual who brought the incident to its attention. Mr Marchant had led the Dublin-based fast fashion chain, which runs more than 450 shops, since 2009, when he took over as chief executive from founder Arthur Ryan. He was previously chief operating officer at rival New Look and had held roles at Debenhams, Topman and River Island. George Weston, chief executive of ABF, said: “I am immensely disappointed. “At ABF, we believe that high standards of integrity are essential. “Acting responsibly is the only way to build and manage a business over the long-term. “Colleagues and others must be treated with respect and dignity. “Our culture has to be, and is, bigger than any one individual.”Primark runs more than 450 stores globally (Liam McBurney/PA) ABF’s (ABF.L) finance director Eoin Tonge will now act as interim boss of Primark, working with the brand’s senior executives and strategic advisory board, ABF said. Joana Edwards, ABF group financial controller, will replace Mr Tonge on an interim basis. Primark, which makes up almost half of ABF’s sales, brought in more than £9.4 billion in revenues in the 2024 financial year. Shares in ABF, which also owns grocery brands including Ryvita and Twinings, fell by 4% in early trading on Monday as a result. View Comments |
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