Insider Media Limited

Its executive chairman is putting a brave face on it, but there seems to be no light at the end of the tunnel for Somercotes-based chocolatier Thorntons, which today produced its year end results. For the 52 weeks to 26 June, revenues at Thorntons remained flat at £214.6m, compared to £214.8m in 2009.

Profit before tax decreased by 2.4 per cent to £6.1m, however underlying profit before tax improved by 14.2 per cent to £7.5m.

John von Spreckelsen, executive chairman, said in a statement this morning: "I am pleased to report that in spite of the difficult trading environment, sales of Thorntons branded products grew by 4.7 per cent on last year. We have seen strong sales growth in both the Commercial and Thorntons Direct channels and the number of franchises increased by 25 during the year.

"The key challenge for the business continues to be the Own Stores channel, which experienced a decline in sales, particularly in the second half of the financial year. Since the year-end, trading in what is traditionally a quieter period has been in line with our expectations.

"We have strengthened our senior retail management team and we believe that this, together with extensive product innovation and changes to the promotional and marketing programmes, should have a positive impact on trading in the lead up to Christmas.

"At the same time we have also introduced a number of sustainable cost saving initiatives including savings through capital investment in manufacturing, procurement activity and headcount reductions.

"Looking ahead we expect market conditions to remain tough. Thorntons has entered the new financial year as a leaner business, but also with a good indicative order level from our Commercial customers and various initiatives to recover Own Store trading; and this puts the company in a stronger position to face the challenges ahead."