The owner of Primark has announced that enforced store closures across Europe is set to cost the company around £200million.

In a statement to the Stock Exchange this morning, Associated British Foods PLC spoke of "rapidly changing developments regarding Covid-19.

The statement said: Our priority continues to be the health and safety of our colleagues, customers and partners.

"Each of our businesses are closely monitoring the current and potential effects of the outbreak on their operations.

"In our February trading statement we described the risk to supply of goods from our suppliers in China.

"Since then, the situation in China has improved, with most factories supplying Primark having re-opened. As a result, supply shortages from that country are now expected to be minimal."

But while the stores can be supplied, around a fifth of the company's retail estate has been subject to enforced closure.

Shops in Italy have been closed for more than a week already, but over the weekend the French, Austrian and Spanish governments also put restrictions in place.

"Stores accounting for 20 percent of Primark's selling space are now closed until the respective governments permit them to re-open," the statement added.

"These stores currently generate 30 percent of Primark's sales. From the date of this announcement, we had expected sales of £190m from these stores over the next four weeks.

"The remainder of the estate, including the UK which represents 41 percent of sales, has seen like-for-like sales declines over the last two weeks and these have accelerated over the past few days as a result of reduced footfall.

"We are managing the business appropriately but do not expect to significantly mitigate the effect of the contribution lost from these sales.

"Importantly, in aggregate we have not seen a material impact in our sugar, grocery, ingredients and agriculture businesses.

"Given the effect of COVID-19 on Primark's sales, it is too early to provide earnings guidance for the remainder of the current financial year.

"The group has a strong balance sheet, substantial cash liquidity with some £800m of net cash at the half year and significant undrawn bank facilities.

"The group will provide a further update with our interim results on 21 April."