Shares in Associated British Foods fell 54.5p to close on 788.5p yesterday following a profit warning from the international food, ingredients and retail group.

The group warned that it expected a reduction in pre-tax profit for the second half of the year because of conditions in the UK sugar business, its bakery operations and by energy costs.

Analysts had forecast full-year pre-tax profits of £580m but cut their forecasts to as low as £565m on the news.