Thorntons on track

British chocolate retailer Thorntons today said it was on course to meet expectations after a range of new products hit the shops.

Last month, chief executive Peter Burdon stepped down after the firm reported a slump in profits.

But chairman John von Spreckelsen, the former Budgens chief executive who was appointed in June in a bid to revive the confectioner’s fortunes, today said the firm had strong growth potential.

“At the time of the preliminary results, I outlined a number of steps designed to enhance the Thorntons offer and improve sales performance,” he told shareholders at the firm’s annual general meeting.

“We have launched a number of new products including the Single Origin and organics ranges, which are designed to improve our customer offer and meet consumer demand for healthier indulgence choices.”

The Single Origin chocolates which were launched late summer are created using cocoa beans from one region, such as Tanzania or Cuba rather than blended and are understood to be selling in line with expectations.

Mr von Spreckelsen also welcomed the firm’s new chief executive Mike Davies to the board. Mr Davies was formerly managing director of Mars in the UK and Ireland.

Richard Ratner, research analyst at Seymour Pierce, said: “We continue to see von Spreckelsen as the right man to turn round the business – he is moving things in the right direction and we see definite upside at the present price, albeit not in the immediate future.”

The UK-based firm posted pre-tax profits of £5.2m (€7.7m) for the year to June 24 compared with £8.1m (€12m) last year.

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

Some £1m (€1.49m) is being invested in the upgrade and refurbishment of stores as part of its turnaround strategy.

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 more than 360 stores in the UK and 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 (€4.6bn) in 2005.