Primark will embark on plans to increase its selling space in Ireland substantially as it reaps the rewards of the conversion of former Littlewoods stores in the UK.

Parent company Associated British Foods chief executive George Weston said that he had a “big programme” to increase selling space in the country by expanding existing shops and finding new sites.

“When you look at the densities of stores in Ireland, they are higher than the UK,” he said.

Primark’s Irish division, which trades as Penneys, comprises 20 per cent of the retailer’s total floorspace.

In the full year to September 15, Primark’s revenues rocketed 37 per cent to£1.6 billion. Adjusted operating profit jumped 20 per cent to£200 million.

Panmure Gordon analyst Graham Jones said a 1 per cent rise in like-for-likes was “impressive”, given the poor summer weather and cannibalisation from new stores. Margins dipped to 12.5 per cent from 14.2 per cent during the period.

However, Jones, who rated the retailer a buy, expected margins to improve, with less discounting activity this year. “We see substantial growth opportunities,” he said.

Primark, which has 170 stores in the UK, Ireland and Spain, will open nine stores this year, five of which will be in Spain. Two will open this month.

Weston plans to start a trial in a new market this year. “We favour developed rather than developing markets,” he said.

It is expected that the retailer will open in Portugal and it is also likely to open in Germany, as revealed by Retail Week (RW October 5).

Weston said he expected a return to “industry-leading like-for-like growth in the future”, when the new stores’ sales performance beds down in the next two to three years.

ABF group revenues jumped 13 per cent to£6.8 billion. Adjusted profit before tax rose 10 per cent to£613 million.

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