Associated British Foods (ABF), which owns the Penneys/ Primark chain of clothing stores, has said it is seeking additional stores in the Republic and the refurbishment and upgrading of existing stores will continue.

The company, which announced yesterday that its profits this year are likely to fall, says the biggest difficulty in the Republic is finding suitable locations.

"Our presence in both parts of Ireland will be maintained and we have no plans whatsoever to sell the business to anyone," said ABF's group chief accountant, Mr Peter Patchett yesterday.

ABF's results for the 24 weeks to the end of February 1998 show an £8 million sterling drop in pre-tax profits to £193 million. However, the company will not say how much the Penneys/Primark chain contributed to this figure.