Susannah Streeter, chief investment strategist at Wealth Club, said: “Shares in Associated British Foods have slipped after a sour update from its sugar division, with the group warning losses will be deeper than previously expected as higher energy costs linked to the conflict in the Middle East bite into profitability.
“Primark remains the jewel in the crown and its planned separation from the wider group looks strategically sound given this volatility from the sugar division.
“It strengthens the argument that the discount fashion chain deserves to stand on its own two feet rather than having its valuation diluted by the more cyclical fortunes of the food and sugar businesses.”
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