The owner of Primark has said it is considering spinning off the retail chain from its food business after revealing a drop in its annual profits. Associated British Foods (AB Foods) announced a review of the structure of the group alongside its full-year financial results.

The company reported an adjusted pre-tax profit of £1.7 billion for the year to September 13, a decline of 13% compared with the prior year. Sales across Primark grew by 1% year-on-year to £9.5 billion, with stronger trading over the second half of the year helping to balance out a weaker first half.

It flagged “particularly weak shopping activity within elements of Primark’s customer base” as people were more cautious to spend, with sales in the UK and Ireland slipping by 3.1% compared like-for-like with last year.

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