Primark owner Associated British Foods (ABF) has warned that there is a risk of supply shortages on some of the retailer's lines later in the year if factory delays in China caused by the coronavirus outbreak are prolonged.

However, it said the high street giant, which sources numerous products from China, is "well stocked with cover for several months" and does not expect any "short-term impact" as a result of the virus.

ABF said it is assessing plans to mitigate the impact of coronavirus on Primark, including the possibility of increasing production from suppliers in other regions.

The FTSE 100 firm also said it has some food operations in China, with its AB Mauri, AB Agri and Ovaltine factories in the country operating at reduced capacity due to "labour and logistics constraints".

READ MORE: Monday Interview: Gordon is an ever-present in shifting hospitality world

The warning came as ABF said half-year sales and operating profit growth are both expected to surpass expectations following strong sales at the high street retailer.

The group said Primark sales in the first half of the financial year are 4.2% higher than the same period last year, as it was boosted by recent site expansions.

The group said it was on track to post full-year figures in line with expectations, on the back of strong group sales and profits for the half year to February 29.

Associated British Foods said Primark's UK sales are expected to have risen 3% against last year following store expansions and openings.

Like-for-like sales are expected to have dropped 1.3% over the half-year period.

The firm said UK sales were "particularly good" in November and December but have "weakened" in January and February.

Elsewhere, ABF said revenues in its sugar business are expected to improve on last year due to higher EU sugar prices and increased export sales.

The firm's grocery business has seen revenues in line with expectations, while profits have improved against last year, as the firm benefited from reduced losses in its troubled Allied Bakeries business, which produces Kingsmill bread.

It said its Twinings tea business has seen higher sales than last year, driven by growth across both black tea and herbal tea.

Estate agents Countrywide and LSL are in talks over a merger deal which could create the UK's largest estate agency business.

LSL, which has brands including Your Move and Marsh & Parsons, confirmed it is in discussions over a deal with Bairstow Eves owner Countrywide in a short statement.

READ MORE: Guy Stenhouse: Forget petty politics and grab the gift horse with both hands

The announcement comes after a testing few years for Countrywide, which has seen its share price slump on the back of mounting losses.

Debt-burdened Countrywide recently agreed a deal to sell its commercial property business Lambert Smith Hampton in a £38 million deal, amid a stalled UK property market.

The confirmation came after Sky News reported that the two companies were in talks over the deal, which would value the combined business at almost £470 million.

Countrywide currently has a market capitalisation of £110 million based on close of trading on Friday, while LSL is valued at around £352 million.

In a statement, LSL said: "In view of the recent press speculation regarding Countrywide and the announcement by Countrywide, the board of LSL Property Services confirms that it is in discussions with Countrywide regarding a possible all-share combination.

"Discussions between Countrywide and LSL are ongoing. At this stage, there can be no certainty that any offer will ultimately be made for Countrywide.

"LSL reserves the right to introduce other forms of consideration and/or vary the mix or composition of consideration of any offer."

A body representing councils across Scotland has raised fears that the Scottish Government's draft budget will impact their ability to meet child poverty targets.

The Convention of Scottish Local Authorities (Cosla) warned the proposals would result in a £95 million cut to revenue and £117m reduction to capital funds - £300m and £130m in real terms respectively.

READ MORE: Global demand for rare whisky fuels success for online auctions entrepreneur

Cosla claims the proposals put the government's 2030 child poverty targets at risk, saying there has not been enough consideration for successive years of cuts, rising inflation and demand.

Stephen McCabe, Cosla's children and young people spokesman, said: "Councils lobbied the government hard to address our concerns over child poverty by investing in the essential services that councils deliver - from social work services that support families to work through complex, deep-rooted issues to holiday lunch clubs that provide food and vital links to other services such as employability, income maximisation and housing.

"As the budget stands, these services will be under threat and the central role that councils have in reaching the most vulnerable is once again not fully recognised."

A Scottish Government spokeswoman said: "The first update on our Tackling Child Poverty Delivery Plan, which is backed by a £50 million fund, showed that 48 of the 58 actions in the plan are in progress or being delivered.

"Taken together with the flexibility to increase council tax, our local government settlement gives councils an increase of revenue spending of up to 4.3% in real terms to deliver local services."