Shares digital

Thorntons (THT) – Interims PTP: £11.9m (£10.5m) Divi 1.95p (1.95p)

Despite the fall in consumer confidence the group enjoyed strong sales and profits growth. Sales through its own stores increased by 4.7% helped by product innovation and the relaunch of the iconic Continental range.

The real boost, however, came from the strategy of an increased emphasis on franchised outlets, third party sales through supermarkets and extending the brand through licensing. Although sales via the group’s website increased by over 25% they are still relatively small, worth just over 4% of turnover.

Thorntons is developing a new store concept which will be trialled this summer. Following the publication of the results the chairman John Von Spreckelsen bought 100,000 shares. At 157p the shares are selling on a PE of 17, falling to 14.5 next year.

Shares says: Current rating justified by brand strength and market’s respect for new management team.

by: John Marshall