AB Foods is expecting good results in the second half of the financial year.

In its recent announcement, Associated British Foods said that they are satisfied with their performance in the period as they are expecting similarly good adjusted operating profit figures for the second half as well as was earned in the first half.

Also, the owner of the Primark retail chain, AB cleared in its statement that the company has plans to change last year's benefit pension schemes with finance income this year because of the increase that has been cited in the market value of pension scheme assets at the end of last year.

Moreover, it also cleared to reduce the underlying tax rate as compared to the previous figures i. e. approximately by 2% low than what was used in the interim results, reason behind stated to be the fall in the UK corporation tax rate and profit mix that is occurring in different tax jurisdictions.

Further, it was mentioned about the higher levels of capital expenditure and working capital this year, which jumped because of increasing commodity costs further resulting in a higher level of net debt throughout the year. As per the calculation, the company’s net debt could stand at £1.2bn towards the end of the year.