Primark is still bucking the consumer downturn on the High Street as shoppers become ever more cost conscious.

Second-half, like-for-like sales growth halved, but the budget chain store's owner, Associated British Foods (ABF), made clear that virtually all of this was due to a blip in April when it blamed poor weather and the early Easter for "weak sales".

John Bason, ABF's finance director, said: "Primark is trading very strongly at the moment. That's not just because the Uk consumer is feeling the squeeze but because value clothing is still increasing its share of the market which is a long-term trend which we are the right side of."

Analysts said they believed that after no growth in sales in the third quarter Primark had recovered completely to show 4% like-for-like growth in the final three months.

Bason also said that the firm had noticed no effect on sales in June after negative television coverage accusing it of sourcing clothes from factories which used child labour in the Third World. As a result it sacked three suppliers.

Today ABF said that Primark's sales and profits for the full year "will again be well ahead of last year". However it admitted that like-for-like sales growth had slowed from 4% in the first half of the year to 2% in the second half.

It has opened another eight stores - three in the Uk and five in Spain - which it described as "trading well."

Profit margins are "expected to be broadly in line with last year".

A new major distribution centre for Primark ois due to open this week which will expand the group's capacity by 50%, indicating that the ABF board sees plenty of scope for further growth in the brand.

Across the whole group ABF said that it expects good growth in operating profits from Primark, groceries and agriculture to offset the fall in profits from its sugar operation.

It added: "Progress in adjusted earnings per share is expected for the full year."

The group's grocery division, which includes kingsmill bread, Twinings tea, Ryvita and Jordans cereals, had a strong second half with price rises recovering all the costs of raw ingredients but not all the rises in energy costs.