Value fashion retailer Primark’s keen prices helped it defy the economic gloom with a 5 per cent rise in like-for-like sales in the six months to February 28.

In its pre-close update Primark owner Associated British Foods (ABF) said it expected the chain to “again deliver excellent results” at the interim.

However, ABF warned that Primark’s new distribution centre at Thrapston, Northamptonshire, which has been operating throughout the reporting period, has increased fixed costs and that would be reflected in a lower operating profit margin.

Primark has opened six stores since the year-end – one each in Corby, Northamptonshire, and High Wycombe, Buckinghamshire, as well as three branches in Spain and its first shop in the Netherlands, in Rotterdam. It will open its first stores in Germany and Portugal – in Bremen and Lisbon respectively – during the second half.

Panmure Gordon analyst Graham Jones said: “Primark is in the early stages of becoming a truly pan-European retailer, while it still has substantial growth opportunities in its domestic markets.” Jones estimates that the Thrapston distribution centre will add about£15m to Primark’s overheads this year.

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