Thorntons cost cutting measures help to push up full-year profit

City A.M. Reporter

OLATE chain Thorntons said yesterday that its full-year profit would be higher than previously expected as a result of cost-cutting measures and higher sales.

The Derbyshire-based firm has been shutting down high street stores to focus on its online business, closing 36 shops in 2012 and 12 in the first half of 2013.

Thorntons said that, thanks to actions taken in the last two years, full-year profit would be ahead of the market consensus of £4.6m.

The profit upgrade comes less than three months after Thorntons said profits would be “substantially ahead” of market expectations and sent shares up 3.68 per cent yesterday to 98p.

“This is the second time in three months that the company has made such a statement, clearly good news,” Bethany Hocking, a retail analyst at Investec said.

Shares in Thorntons have risen 140 per cent so far this year, compared to the broader FTSE AllShare which is up 123 per cent.

The firm’s pre-tax profit fell 79 per cent in 2012 to £850,000 following a string of profit warnings.