Struggling chocolate retailer Thorntons has recorded half-year profits of little more than £500,000.
The confectionary chain registered post-tax profits of £3.1m but – when the cost of ‘exceptional items’ was factored in – this plummeted to £618,000.
For the same period last year Thorntons’ profits stood at £8.4m.
Total revenue for the 28 weeks ending January 7 also dropped to £130m from £133.5m.
Like-for-like sales suffered a 5.5% fall with own store sales down 7.9% to £68.3m.
The company’s net debt also crept up to £16.2m from £14m.
Despite the disappointing profit sheet chief executive Jonathan Hart insisted the company’s rebalancing strategy remains on track.
Thorntons closed 20 shops during the period and intends to shut at least a further 120 outlets from its 344-store portfolio.
Hart said: “These results and the economic climate only reaffirm the need for change.
“We have a well-managed balance sheet, quality asset-backing and good cash generation.
“The board is confident that Thorntons has the expertise and the resources to successfully complete this transformation and restore profitability.”
The chain’s internet sales also grew solidly over the period, rising by 4.6% to £6.7m while intenration sales grew to £2.6m from £2.2m.
Thorntons also insisted it had a strong order book for the upcoming Mothers Day and Easter spring events.
By Andy Pearce
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