Thorntons boss steps down as profits fall

Chocolate retailer Thorntons today reported a slump in profits as it announced chief executive Peter Burdon was to step down.

The Derbyshire-based firm posted pre-tax profits of £5.2 million for the year to June 24 compared to £8.1m (€11.9m) last year.

Like-for-like sales fell 3.7% over the year although the sales reduction slowed in the second half to 1.8%, Thorntons said.

In June, former Budgens chief executive John von Spreckelsen was taken on as chairman at the confectioner in a bid to revive its fortunes.

Today, he said that although the decline in sales and profits was disappointing “the prospects and potential of the business remain positive”.

“In terms of current trading the hot weather in July resulted in a decline in chocolate sales, partly offset by high ice cream sales,” he added. “In August and early September, sales were in line with our expectations.”

Mr Burdon, who will continue as chief executive until a successor has been appointed, said for Christmas this year and Spring next year investment has been increased for seasonal gifts. Some £1m (€1.5m) will be invested in the upgrade and refurbishment of its stores over the next year, he added.

The firm intended to reverse the decline in store numbers by implementing a programme of site acquisitions, he said.

Thorntons traces its roots back to 1911 when Joseph William Thornton opened a sweet shop in Sheffield with his teenage son.

Another store was opened in 1913 when they started making their own sweets and the firm later expanded into a nationwide chain.

It currently operates from 367 stores in the UK and two in Ireland. It also has 212 franchise stores, mainly in smaller towns in the UK.

The UK chocolate market was estimated to be worth £3.1bn (€4.5bn) in 2005.