Thorntons woes deepen as record sales fail to prevent it dropping £1.1m into the red

The company, which is closing up to 180 stores over the next three years, was left nursing a bottom-line loss of £1.1 million for the year to 25 June after a £5.4m write-off for exceptional items offset pre-tax profits of £4.3m. The profit figure was down from £6.9m last year.

The disappointing results came against a 1.7 per cent increase in sales, which hit a record £218.3m by the end of the period. Strong sales through supermarkets and other commercial channels helped to overcome an 8.2 per cent drop in sales via Thornton’s own stores, franchisees and online.

The performance highlights the pressure on the chain’s turnaround plan as it seeks to grow revenues through the internet and other retailers.

It is also working to revitalise the brand, including through the creation of a “theatre of the senses” in its shops, and will look to rely less on seasonal events.

However, chairman John von Spreckelsen expects the firm’s turnaround will get little help from current trading conditions.

“We anticipate that the weakness in footfall and consumer sentiment experienced through our own store and franchise channels during the first half of 2011 will continue at least into 2012,” he said.

“We are, however, looking forward to another strong year of growth in our commercial channel”.