TIDMTHT
RNS Number : 2391H
Thorntons PLC
17 February 2010
FOR IMMEDIATE RELEASE
Thorntons PLC
Announcement of Interim Results
Thorntons PLC ("Thorntons" or "the Company") today announced its interim results
for the 28 weeks ended 9th January 2010.
The Company reported significantly improved profitability which is mainly due to
reduced levels of discounting in Own Stores during the period before Christmas
and more profitable sales within the Commercial channel. Although overall sales
were down 0.7% year on year, sales of Thorntons' branded products, excluding
private label products, across all channels increased by 5.5%.
* Profit before tax increased by 24.6% to GBP9.1 million (2009: GBP7.3 million)
* Revenues of GBP127.4 million declined by 0.7% (2009: GBP128.4 million)
* Interim dividend increased by 62.5% to 1.95 pence per share (2009:
1.20p)
* Gross margins increased 1.6% year on year to 50.8%
* Net debt reduced by GBP1.7 million to GBP14.6 million against the same period
last year
* Earnings per share increased by 184.4% to 9.4p (2008: 3.3p)
Mike Davies, Thorntons Chief Executive, said:
"I am pleased to be able to report a significantly improved profit performance
for the first six months which was assisted by our decision to avoid heavy
discounting of prices in our retail outlets. Although the sales volume recorded
from our shops suffered a slight decline, sales of Thorntons' branded products
across all channels, excluding private label products, increased by 5.5 percent.
"We are in the process of adding several products to our offering and have just
launched the new Easter range in our stores. Going forward we will continue to
focus on reducing our dependency on Christmas by investing in products that
drive sales in the traditionally quieter summer months. We therefore expect to
be able to continue to improve our performance in the second half, which is
historically loss-making."
ENDS
For further information please contact:
Cardew Group
Nadja Vetter / Emma Consett / Daniela Cormano
Interim management report
We are pleased to report that profit before tax
increased by 24.6% to GBP9.1 million (2009: GBP7.3 million) in the first half of
the financial year. The Board has therefore decided to increase the dividend by
62.5% to 1.95p (2009: 1.20p).
The improvement in profitability was mainly due to significantly reduced levels
of discounting in our Own Stores during the period before Christmas and more
profitable sales within our Commercial channel. Our strategy of product
innovation, improving the in-store environment and customer service remains our
primary focus as well as cost management to continue improving our profit
performance.
Sales
Sales for the 28-week period to 9 January 2010 were down 0.7% to GBP127.4
million (2009: GBP128.4 million). However, sales of Thorntons' branded products,
after excluding sales of private label products, grew by 5.5%. While Own Store
sales were down, sales to our commercial customers and from our website
delivered 6.5% and 11.5% year on year growth respectively.
Retail
Own Stores
Own Stores sales declined by GBP1.9 million to GBP78.8 million (2009: GBP80.7
million). Like for like sales in our Own Stores declined by 2.4% (2009: -4.2%)
in the period under review. While like for like sales grew by 1.3% in the first
quarter, they declined by 4.4% in the second quarter. The decrease in second
quarter sales was driven by our decision to protect profit margins in the lead
up to Christmas through significantly reduced discounting. At Christmas we
experience some switching from our Own Stores to the Commercial channel,
particularly with boxed chocolates.
Our seasonal lines were popular and we sold all of our Christmas stock by the
end of the period. Our Classics, Moments, Chocolate Blocks and Dessert Gallery
lines all performed well.
As part of our product innovation, the City Continental and Metropolitan gifting
lines were launched which were received positively by customers.
During the period we opened one new store, closed two and now have 378 Own
Stores.
Franchise
Since the loss of 94 stores when Birthdays Ltd. went into administration in May
2009, we have been able to re-open 70 stores, of which 37 were former Birthdays
stores. 33 stores opened during the period under review. The total number of
franchise stores now stands at 222 and plans are in place for at least 26
further openings by the end of our financial year in June. As a direct
consequence of the Birthdays administration, Franchise sales declined by 17.4%
to GBP8.2 million (2009: GBP9.9 million) in the half year.
Thorntons Direct
Thorntons Direct sales increased by 11.5% to GBP5.9 million (2009: GBP5.3
million). Consumer sales grew strongly following the launch of the new website
and increased marketing activity. The corporate business returned to growth as a
result of our sales efforts in the leisure and hospitality sectors, a trend that
has continued since the period end.
Sales & Operations
Commercial
The Thorntons brand continues to perform well in all our major retail customers.
Commercial sales grew by 6.5% to GBP34.6 million year on year despite the loss
of the Woolworths business in late 2009. After excluding GBP1.6 million of lower
margin private label sales (2009: GBP9.1 million), Commercial sales grew by
41.0%.
International sales progressed throughout the period with new orders from the
Middle East and in Travel Retail (Duty Free). Opportunities in other countries
are moving ahead, but it is still early days.
Margins and operating expenses
Gross margins improved by 1.6% to 50.8% this year from 49.2% last year. Own
Store promotional discount levels were significantly lower than last year. All
channels achieved year on year gross margin improvements with the Commercial
performance enhanced by the lower levels of less profitable private label sales.
There were no Own Stores sales price increases in the period and raw material
and manufacturing cost price increases were absorbed within margin or through
product re-modelling.
Operating expense growth was contained at 0.8% and included the effect of
inflation, higher utility costs and increased investment in advertising and
retail merchandising. This year's expenses also include a charge of GBP444,000
(2009: GBP52,000) for employee redundancy costs and impairment and onerous lease
charges of GBP463,000 (2009: GBPnil). Of the impairment and onerous lease
charges, GBP362,000 (2009: GBPnil) relates to two stores in Eire.
Other operating income increased by 10.3%, which was due entirely to growth in
the licensing activities of the Group with its two main licensees. A third
licence has been contracted to commence the supply of biscuits during the second
half of the financial year.
Financial position
Net debt at the end of the period was GBP14.6 million including GBP7.4 million
of finance leases compared with net debt at the end of the corresponding period
last year of GBP16.3 million, which included GBP9.2 million of finance leases.
The non-finance lease element of net debt falls well within the Group's new
facilities of GBP52.5 million, which are committed until August 2012.
Taxation
The total tax charge for the period is GBP2.8 million (2009: GBP5.1 million)
with the underlying tax charge amounting to 30.6% (2009: 30.9%) of profit before
tax. This is higher than the statutory rate of 28.0% (2009: 28.0%) due to
depreciation on assets for which the Group receives no tax allowances. The prior
year tax charge included the effect of the change in tax law which related to
the phasing out of industrial buildings allowances and equated to a one-off
deferred tax charge of GBP2.9 million.
Pension scheme
The valuation of the Thorntons' Pension Scheme as at 27 June 2009 has been
updated on an actuarial basis applying current discount and inflation rate
assumptions and incorporating the valuation of the plan assets as at 9 January
2010.
Principal risks and uncertainties
Our 2009 Annual Report (pages 32 and 33) outlines our assessment of the
principal risks and uncertainties facing the business together with the
processes which are in place to monitor and mitigate those risks where possible.
Looking forward to the second half of the current financial year, we believe
that the risks and processes identified in the 2009 Annual Report are still
applicable. In the current economic climate we continue to devote more resources
to managing the Group's credit risk whether from financial institutions,
customers or suppliers.
Board changes
In December 2009 John Wall, Finance Director, having previously informed us of
his decision to leave, stepped down from the Board and left the Company. The
Board expresses its thanks to John for his contribution and wishes him every
success in the future. At the same time Mark Robson was appointed as Finance
Director to the Board. Mark has extensive experience in the retail and consumer
goods sectors, most recently with Somerfield Limited.
Outlook
After a challenging 2009, Thorntons has made good progress and has the
capabilities to continue to improve performance. Our focus on pricing, customer
service, product innovation and cost initiatives positions us well in what could
possibly be a difficult retail environment in the remainder of 2010.
Mike Davies
Chief Executive
Consolidated income statement
28 weeks ended 9 January 2010
+--------------+--------+-----------+-----------+-----------+
| | | Unaudited | Unaudited | Audited |
+--------------+--------+-----------+-----------+-----------+
| | | 28 | 28 | 52 |
| | | weeks | weeks | weeks |
+--------------+--------+-----------+-----------+-----------+
| | | ended | ended | ended |
+--------------+--------+-----------+-----------+-----------+
| | | 9 | 10 | 27 |
| | | January | January | June |
+--------------+--------+-----------+-----------+-----------+
| | | 2010 | 2009 | 2009 |
+--------------+--------+-----------+-----------+-----------+
| | Note | GBP'000 | GBP'000 | GBP'000 |
+--------------+--------+-----------+-----------+-----------+
| Revenue | 4 | 127,418 | 128,363 | 214,805 |
+--------------+--------+-----------+-----------+-----------+
| Cost | | (62,669) | (65,147) | (109,836) |
| of | | | | |
| sales | | | | |
+--------------+--------+-----------+-----------+-----------+
| Gross | | 64,749 | 63,216 | 104,969 |
| profit | | | | |
+--------------+--------+-----------+-----------+-----------+
| Operating | | (55,875) | (55,421) | (96,639) |
| expenses | | | | |
+--------------+--------+-----------+-----------+-----------+
| Other | | 769 | 697 | 1,410 |
| operating | | | | |
| income | | | | |
+--------------+--------+-----------+-----------+-----------+
| Operating | 4 | 9,643 | 8,492 | 9,740 |
| profit | | | | |
+--------------+--------+-----------+-----------+-----------+
| Finance | | 177 | 8 | 38 |
| income | | | | |
+--------------+--------+-----------+-----------+-----------+
| Finance | | (746) | (1,216) | (1,690) |
| costs | | | | |
+--------------+--------+-----------+-----------+-----------+
| Profit | 4 | 9,074 | 7,284 | 8,088 |
| before | | | | |
| taxation | | | | |
+--------------+--------+-----------+-----------+-----------+
| Taxation | 5 | (2,780) | (5,104) | (4,483) |
+--------------+--------+-----------+-----------+-----------+
| Profit | | 6,294 | 2,180 | 3,605 |
| attributable | | | | |
| to equity | | | | |
| shareholders | | | | |
+--------------+--------+-----------+-----------+-----------+
| Earnings | | | | |
| per | | | | |
| share | | | | |
+--------------+--------+-----------+-----------+-----------+
| Basic | 6 | 9.4p | 3.3p | 5.4p |
+--------------+--------+-----------+-----------+-----------+
| Diluted | 6 | 9.3p | 3.3p | 5.4p |
+--------------+--------+-----------+-----------+-----------+
All activities in both the current and previous year relate to continuing
operations.
Consolidated statement of comprehensive income
28 weeks ended 9 January 2010
+------------------+-----------+-----------+---------+
| | Unaudited | Unaudited | Audited |
+------------------+-----------+-----------+---------+
| | 28 | 28 | 52 |
| | weeks | weeks | weeks |
+------------------+-----------+-----------+---------+
| | ended | ended | ended |
+------------------+-----------+-----------+---------+
| | 9 | 10 | 27 |
| | January | January | June |
+------------------+-----------+-----------+---------+
| | 2010 | 2009 | 2009 |
+------------------+-----------+-----------+---------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------+-----------+-----------+---------+
| Profit | 6,294 | 2,180 | 3,605 |
| for | | | |
| the | | | |
| period | | | |
+------------------+-----------+-----------+---------+
| Other | | | |
| comprehensive | | | |
| income: | | | |
+------------------+-----------+-----------+---------+
| | (3,246) | (93) | (8,629) |
| Actuarial | | | |
| loss | | | |
| recognised | | | |
| in the | | | |
| defined | | | |
| benefit | | | |
| pension | | | |
| scheme | | | |
+------------------+-----------+-----------+---------+
| | 934 | 28 | 2,416 |
| Movement | | | |
| of | | | |
| deferred | | | |
| tax on | | | |
| pension | | | |
| liability | | | |
+------------------+-----------+-----------+---------+
| Total | (2,312) | (65) | (6,213) |
| other | | | |
| comprehensive | | | |
| income | | | |
+------------------+-----------+-----------+---------+
| Total | 3,982 | 2,115 | (2,608) |
| comprehensive | | | |
| income/(expense) | | | |
| for the | | | |
| financial period | | | |
| attributable to | | | |
| equity | | | |
| shareholders | | | |
+------------------+-----------+-----------+---------+
The notes below form an integral part of this condensed set of financial
statements.
Consolidated statement of changes in equity
28 weeks ended 9
January 2010
+---------------+---------+---------+----------+---------+
| | Share | Share | Retained | |
+---------------+---------+---------+----------+---------+
| | capital | premium | earnings | Total |
+---------------+---------+---------+----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------+---------+---------+----------+---------+
| At 28 | 6,835 | 13,750 | 14,450 | 35,035 |
| June | | | | |
| 2008 | | | | |
+---------------+---------+---------+----------+---------+
| Profit | - | - | 2,180 | 2,180 |
| for | | | | |
| the | | | | |
| period | | | | |
+---------------+---------+---------+----------+---------+
| Other | - | - | (65) | (65) |
| comprehensive | | | | |
| income | | | | |
+---------------+---------+---------+----------+---------+
| Total | - | - | 2,115 | 2,115 |
| comprehensive | | | | |
| income for | | | | |
| the period | | | | |
| ended 10 | | | | |
| January 2009 | | | | |
+---------------+---------+---------+----------+---------+
| Transactions | | | | |
| with owners: | | | | |
+---------------+---------+---------+----------+---------+
| | - | 2 | - | 2 |
| New | | | | |
| share | | | | |
| capital | | | | |
| issued | | | | |
+---------------+---------+---------+----------+---------+
| | - | - | 286 | 286 |
| Share-based | | | | |
| payment | | | | |
| credit | | | | |
+---------------+---------+---------+----------+---------+
| | - | - | (177) | (177) |
| Effect | | | | |
| of tax | | | | |
| on | | | | |
| share | | | | |
| option | | | | |
| movement | | | | |
+---------------+---------+---------+----------+---------+
| | - | - | (3,237) | (3,237) |
| Dividends | | | | |
+---------------+---------+---------+----------+---------+
| At 10 | 6,835 | 13,752 | 13,437 | 34,024 |
| January | | | | |
| 2009 | | | | |
+---------------+---------+---------+----------+---------+
| | | | | |
+---------------+---------+---------+----------+---------+
| At 27 | 6,835 | 13,752 | 8,151 | 28,738 |
| June | | | | |
| 2009 | | | | |
+---------------+---------+---------+----------+---------+
| Profit | - | - | 6,294 | 6,294 |
| for | | | | |
| the | | | | |
| period | | | | |
+---------------+---------+---------+----------+---------+
| Other | - | - | (2,312) | (2,312) |
| comprehensive | | | | |
| income | | | | |
+---------------+---------+---------+----------+---------+
| Total | - | - | 3,982 | 3,982 |
| comprehensive | | | | |
| income for | | | | |
| the period | | | | |
| ended 9 | | | | |
| January 2010 | | | | |
+---------------+---------+---------+----------+---------+
| Transactions | | | | |
| with owners: | | | | |
+---------------+---------+---------+----------+---------+
| | 1 | 14 | - | 15 |
| New | | | | |
| share | | | | |
| capital | | | | |
| issued | | | | |
+---------------+---------+---------+----------+---------+
| | - | - | 181 | 181 |
| Share-based | | | | |
| payment | | | | |
| credit | | | | |
+---------------+---------+---------+----------+---------+
| | - | - | (59) | (59) |
| Effect | | | | |
| of tax | | | | |
| on | | | | |
| share | | | | |
| option | | | | |
| movement | | | | |
+---------------+---------+---------+----------+---------+
| Dividends | - | - | (3,247) | (3,247) |
+---------------+---------+---------+----------+---------+
| At 9 | 6,836 | 13,766 | 9,008 | 29,610 |
| January | | | | |
| 2010 | | | | |
+---------------+---------+---------+----------+---------+
The notes below form an integral part of this condensed set of financial
statements.
Consolidated balance sheet
28 weeks ended 9 January 2010
+---------------+--------+-----------+-----------+----------+
| | | Unaudited | Unaudited | Audited |
+---------------+--------+-----------+-----------+----------+
| | | as at | as at | as at |
+---------------+--------+-----------+-----------+----------+
| | | 9 | 10 | 27 |
| | | January | January | June |
+---------------+--------+-----------+-----------+----------+
| | | 2010 | 2009 | 2009 |
+---------------+--------+-----------+-----------+----------+
| | Note | GBP'000 | GBP'000 | GBP'000 |
| | | | | |
+---------------+--------+-----------+-----------+----------+
| Assets | | | | |
+---------------+--------+-----------+-----------+----------+
| Non-current | | | | |
| assets | | | | |
+---------------+--------+-----------+-----------+----------+
| Intangible | 8 | 3,993 | 5,487 | 4,850 |
| assets | | | | |
+---------------+--------+-----------+-----------+----------+
| Property, | 9 | 60,030 | 64,754 | 62,759 |
| plant and | | | | |
| equipment | | | | |
+---------------+--------+-----------+-----------+----------+
| | | 64,023 | 70,241 | 67,609 |
+---------------+--------+-----------+-----------+----------+
| Current | | | | |
| assets | | | | |
+---------------+--------+-----------+-----------+----------+
| Inventories | | 26,476 | 24,732 | 25,370 |
+---------------+--------+-----------+-----------+----------+
| Trade | | 21,631 | 19,111 | 14,056 |
| and | | | | |
| other | | | | |
| receivables | | | | |
+---------------+--------+-----------+-----------+----------+
| Cash | 11b | 5,292 | 5,412 | 588 |
| and | | | | |
| cash | | | | |
| equivalents | | | | |
+---------------+--------+-----------+-----------+----------+
| | | 53,399 | 49,255 | 40,014 |
+---------------+--------+-----------+-----------+----------+
| Liabilities | | | | |
+---------------+--------+-----------+-----------+----------+
| Current | | | | |
| liabilities | | | | |
+---------------+--------+-----------+-----------+----------+
| Trade | | (34,661) | (36,017) | (22,628) |
| and | | | | |
| other | | | | |
| payables | | | | |
+---------------+--------+-----------+-----------+----------+
| Borrowings | | (15,655) | (15,999) | (22,625) |
+---------------+--------+-----------+-----------+----------+
| Current | | (3,026) | (2,344) | (1,043) |
| tax | | | | |
| liabilities | | | | |
+---------------+--------+-----------+-----------+----------+
| Provisions | | (315) | (192) | (254) |
| for | | | | |
| liabilities | | | | |
+---------------+--------+-----------+-----------+----------+
| | | (53,657) | (54,552) | (46,550) |
+---------------+--------+-----------+-----------+----------+
| Net | | (258) | (5,297) | (6,536) |
| current | | | | |
| liabilities | | | | |
+---------------+--------+-----------+-----------+----------+
| Non-current | | | | |
| liabilities | | | | |
+---------------+--------+-----------+-----------+----------+
| Borrowings | | (4,265) | (5,716) | (4,637) |
+---------------+--------+-----------+-----------+----------+
| Deferred | | (1,944) | (5,840) | (2,917) |
| tax | | | | |
| liabilities | | | | |
+---------------+--------+-----------+-----------+----------+
| Retirement | 10 | (24,202) | (15,852) | (21,313) |
| benefit | | | | |
| obligations | | | | |
+---------------+--------+-----------+-----------+----------+
| Other | | (2,889) | (2,980) | (2,816) |
| non-current | | | | |
| liabilities | | | | |
+---------------+--------+-----------+-----------+----------+
| Provisions | | (855) | (532) | (652) |
| for | | | | |
| liabilities | | | | |
+---------------+--------+-----------+-----------+----------+
| | | (34,155) | (30,920) | (32,335) |
+---------------+--------+-----------+-----------+----------+
| Net | | 29,610 | 34,024 | 28,738 |
| assets | | | | |
+---------------+--------+-----------+-----------+----------+
| Shareholders' | | | | |
| equity | | | | |
+---------------+--------+-----------+-----------+----------+
| Ordinary | | 6,836 | 6,835 | 6,835 |
| shares | | | | |
+---------------+--------+-----------+-----------+----------+
| Share | | 13,766 | 13,752 | 13,752 |
| premium | | | | |
+---------------+--------+-----------+-----------+----------+
| Retained | | 9,008 | 13,437 | 8,151 |
| earnings | | | | |
+---------------+--------+-----------+-----------+----------+
| Total | | 29,610 | 34,024 | 28,738 |
| equity | | | | |
| attributable | | | | |
| to parent's | | | | |
| equity | | | | |
| holders | | | | |
+---------------+--------+-----------+-----------+----------+
The notes below form an integral part of this condensed set of financial
statements.
Consolidated statement of cash flows
28 weeks ended 9 January 2010
+---------------------+--------+-----------+-----------+----------+
| | | Unaudited | Unaudited | Audited |
+---------------------+--------+-----------+-----------+----------+
| | | 28 | 28 | 52 |
| | | weeks | weeks | weeks |
+---------------------+--------+-----------+-----------+----------+
| | | ended | ended | ended |
+---------------------+--------+-----------+-----------+----------+
| | | 9 | 10 | 27 |
| | | January | January | June |
+---------------------+--------+-----------+-----------+----------+
| | | 2010 | 2009 | 2009 |
+---------------------+--------+-----------+-----------+----------+
| | Note | GBP'000 | GBP'000 | GBP'000 |
| | | | | |
+---------------------+--------+-----------+-----------+----------+
| Cash | 11a | 19,300 | 23,729 | 17,138 |
| flows | | | | |
| from | | | | |
| operating | | | | |
| activities | | | | |
+---------------------+--------+-----------+-----------+----------+
| Cash | | | | |
| flows | | | | |
| from | | | | |
| investing | | | | |
| activities | | | | |
+---------------------+--------+-----------+-----------+----------+
| Proceeds | | 52 | 45 | 51 |
| from | | | | |
| sale of | | | | |
| property, | | | | |
| plant and | | | | |
| equipment | | | | |
+---------------------+--------+-----------+-----------+----------+
| Purchase | | (1,972) | (4,675) | (7,112) |
| of | | | | |
| property, | | | | |
| plant and | | | | |
| equipment | | | | |
+---------------------+--------+-----------+-----------+----------+
| Net | | (1,920) | (4,630) | (7,061) |
| cash | | | | |
| used | | | | |
| in | | | | |
| investing | | | | |
| activities | | | | |
+---------------------+--------+-----------+-----------+----------+
| Cash | | | | |
| flows | | | | |
| from | | | | |
| financing | | | | |
| activities | | | | |
+---------------------+--------+-----------+-----------+----------+
| Net | | 15 | 2 | 2 |
| proceeds | | | | |
| from | | | | |
| issue of | | | | |
| ordinary | | | | |
| shares | | | | |
+---------------------+--------+-----------+-----------+----------+
| Interest | | (781) | (1,241) | (1,469) |
| paid | | | | |
+---------------------+--------+-----------+-----------+----------+
| Interest | | 177 | 8 | 27 |
| received | | | | |
+---------------------+--------+-----------+-----------+----------+
| Capital | | (2,140) | (1,811) | (3,297) |
| element | | | | |
| of | | | | |
| finance | | | | |
| lease | | | | |
| repayments | | | | |
+---------------------+--------+-----------+-----------+----------+
| Borrowings | | (6,700) | (8,496) | (1,800) |
| repaid | | | | |
+---------------------+--------+-----------+-----------+----------+
| Dividends | | (3,247) | (3,237) | (4,040) |
| paid | | | | |
+---------------------+--------+-----------+-----------+----------+
| Net | | (12,676) | (14,775) | (10,577) |
| cash | | | | |
| used | | | | |
| in | | | | |
| financing | | | | |
| activities | | | | |
+---------------------+--------+-----------+-----------+----------+
| Net | | | | |
| increase/(decrease) | | | | |
| in cash and | | | | |
+---------------------+--------+-----------+-----------+----------+
| cash | | 4,704 | 4,324 | (500) |
| equivalents | | | | |
+---------------------+--------+-----------+-----------+----------+
| Cash | | 588 | 1,088 | 1,088 |
| and | | | | |
| cash | | | | |
| equivalents | | | | |
| at | | | | |
| beginning | | | | |
| of period | | | | |
+---------------------+--------+-----------+-----------+----------+
| Cash | 11b | 5,292 | 5,412 | 588 |
| and | | | | |
| cash | | | | |
| equivalents | | | | |
| at end of | | | | |
| period | | | | |
+---------------------+--------+-----------+-----------+----------+
The notes below form an integral part of this condensed set of financial
statements.
1 General information
The Company is a limited liability company incorporated and domiciled in the UK.
The address of its registered office is Thornton Park, Somercotes, Alfreton,
Derbyshire DE55 4XJ.
The Company is listed on the London Stock Exchange.
The set of financial statements for the 28 weeks ended 9 January 2010 were
approved by the Directors on 16 February 2010. These financial statements do not
comprise statutory accounts within the meaning of Section 434 of the Companies
Act 2006. The financial information contained in this condensed set of financial
statements in respect of the 52 weeks ended 27 June 2009 has been extracted from
the Annual Report and Accounts, which were approved by the Board of Directors on
8 September 2009 and delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified, did not contain an emphasis of
matter paragraph and did not contain any statement under Section 498 of the
Companies Act 2006.
The half-yearly results for the current and comparative periods are unaudited.
The auditors have carried out a review of this condensed set of financial
statements for the 28 weeks ended 9 January 2010 and their report is set out on
page 16.
2 Basis of preparation
This condensed set of financial statements for the 28 weeks ended 9 January 2010
has been prepared in accordance with the Disclosure and Transparency Rules of
the Financial Services Authority and with IAS 34 'Interim financial reporting'
as adopted by the European Union. This condensed set of financial statements
should be read in conjunction with the annual financial statements for the 52
weeks ended 27 June 2009, which have been prepared in accordance with
International Financial Reporting Standards ("IFRS") as adopted by the European
Union.
3 Accounting policies
The accounting policies adopted are consistent with those of the annual
financial statements for the year ended
27 June 2009, as described in those annual financial statements.
The following new standards, amendments to standards or interpretations are
mandatory for the first time for the financial year ending 26 June 2010:
· IAS 1 (amendment) 'Presentation of financial statements'. This will
affect the Group by means of presentation of the primary statements only; and
· IFRS 8 'Operating Segments'. Steps were taken in July 2009 to further
decouple the business by creating two business units, 'Retail' and 'Sales &
Operations' and the management structure was aligned to support the two
divisions. The two business units are the reportable segments under IFRS 8.
The following new standards, amendments to standards and interpretations are
mandatory for the first time for the financial year ending 26 June 2010 but are
not considered to have a significant impact:
· IAS 23 (amendment) 'Borrowing costs';
· IFRS 2 (amendment) 'Share-based payment';
· IAS 32 (amendment) 'Financial instruments: Presentation';
· IFRIC 13 'Customer loyalty programmes';
· IFRIC 15 'Agreements for the construction of real estate';
· IFRIC 16 'Hedges of a net investment in a foreign operation'; and
· IAS 39 (amendment) 'Financial instruments: Recognition and measurement'.
The following new standards, amendments to standards and interpretations have
been issued, but are not effective for the year ending 26 June 2010 and have not
been early adopted:
· IFRS 3 (revised) 'Business combinations' and consequential amendments to
IAS 27 'Consolidated and separate financial statements', IAS 28 'Investments in
associates' and IAS 31 'Interests in joint ventures';
· IFRIC 17 'Distributions of non-cash assets to owners'; and
· IFRIC 18 'Transfers of assets from customers'.
4 Segmental reporting
The Chief Operating Decision Maker has been identified
as the Executive Committee ("Executive"). The Executive reviews the Group's
internal reporting in order to assess performance and allocate resources. The
operating segments of the Group have been determined on this basis.
All revenue arises from UK operations and therefore the Executive does not
consider the business from a geographic perspective, only an operational one.
Two reportable segments, 'Retail' which incorporates Own Stores, Franchise and
Thorntons Direct; and 'Sales & Operations' ("S&O") encompassing the Commercial
trading channel and manufacturing operations,have been identified.
The Executive assesses the performance of the operating segments based on a
measure of operating profit. Costs specific to head office and finance costs
are not included in the result for each operating segment as these costs are not
managed on a segmented basis.
Total segment assets exclude IT assets, non-trade receivables and cash as these
are managed centrally. These items form part of the reconciliation to the total
balance sheet assets.
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+----------+
| | Unaudited | Unaudited | Unaudited |
+-------------+-----------------------------+-----------------------------+------------------------------+
| | 28 weeks ended | 28 weeks ended | 52 weeks ended |
+-------------+-----------------------------+-----------------------------+------------------------------+
| | 9 January 2010 | 10 January 2009 | 27 June 2009 |
+-------------+-----------------------------+-----------------------------+------------------------------+
| | Retail | S&O | Total | Retail | S&O | Total | Retail | S&O | Total |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+----------+
| Total | 92,857 | 34,561 | 127,418 | 95,903 | 32,460 | 128,363 | 157,912 | 56,893 | 214,805 |
| revenue | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+----------+
| Segment | 11,952 | 6,699 | 18,651 | 11,164 | 5,598 | 16,762 | 13,359 | 9,747 | 23,106 |
| operating | | | | | | | | | |
| profit | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+----------+
| Head | | | (9,008) | | | (8,270) | | | (15,166) |
| office | | | | | | | | | |
| costs | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+----------+
| Exceptional | | | - | | | - | | | 1,800 |
| items | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+----------+
| Operating | | | 9,643 | | | 8,492 | | | 9,740 |
| profit | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+----------+
| Net | | | (569) | | | (1,208) | | | (1,652) |
| finance | | | | | | | | | |
| costs | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+----------+
| Profit | | | 9,074 | | | 7,284 | | | 8,088 |
| before | | | | | | | | | |
| taxation | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+----------+
| | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+----------+
| Total | 20,615 | 79,028 | 99,643 | 21,812 | 78,779 | 100,591 | 18,040 | 78,006 | 96,046 |
| assets | | | | | | | | | |
+-------------+---------+---------+---------+---------+---------+---------+---------+---------+----------+
Reportable segment assets are reconciled to total assets as follows:
+-------------+-----------+-----------+-----------+
| | Unaudited | Unaudited | Unaudited |
+-------------+-----------+-----------+-----------+
| | 28 | 28 | 52 |
| | weeks | weeks | weeks |
+-------------+-----------+-----------+-----------+
| | ended | ended | ended |
+-------------+-----------+-----------+-----------+
| | 9 | 10 | 27 |
| | January | January | June |
+-------------+-----------+-----------+-----------+
| | 2010 | 2009 | 2009 |
+-------------+-----------+-----------+-----------+
| Total | 99,643 | 100,591 | 96,046 |
| segment | | | |
| assets | | | |
+-------------+-----------+-----------+-----------+
| Central | 3,246 | 5,186 | 4,047 |
| non-current | | | |
| assets | | | |
+-------------+-----------+-----------+-----------+
| Central | 14,533 | 13,719 | 7,530 |
| current | | | |
| assets | | | |
+-------------+-----------+-----------+-----------+
| Total | 117,422 | 119,496 | 107,623 |
| assets | | | |
+-------------+-----------+-----------+-----------+
5 Taxation
The tax charge including deferred tax for the 28 weeks ended 9 January 2010 is
based on a full year overall expected tax rate of 30.6% (full year 2009: 30.9%
excluding the Industrial Buildings Allowances adjustment).
The current year rate has been calculated by reference to the projected charge
for the full year ending 26 June 2010 and reflects the mainstream corporation
tax rate of 28%. The ordinary tax charge exceeds the charge based on these
statutory rates, principally due to depreciation on owned assets not qualifying
for capital allowances and other permanently disallowable items.
6 Earnings per share
Basic earnings per share is calculated by dividing the
earnings attributable to ordinary shareholders by the weighted average number of
ordinary shares outstanding during the period, excluding those held in the
employee share trust ("ESOP"), which are treated as cancelled.
For
diluted earnings per share, the weighted average number of ordinary shares in
issue is adjusted to assume conversion of all dilutive potential ordinary
shares. Dilutive potential ordinary shares are those share options granted to
employees where the exercise price is less than the average market price of the
Company's ordinary shares during the period.
Reconciliations of the
earnings and weighted average number of shares used in the calculations are set
out below:
+--------------+----------+----------+----------+--------+----------+----------+----------+--------+----------+----------+----------+
| | Unaudited | | Unaudited | | Audited |
+--------------+--------------------------------+--------+--------------------------------+--------+--------------------------------+
| | 28 weeks ended | | 28 weeks ended | | 52 weeks ended |
+--------------+--------------------------------+--------+--------------------------------+--------+--------------------------------+
| | 9 January 2010 | | 10 January 2009 | | 27 June 2009 |
+--------------+--------------------------------+--------+--------------------------------+--------+--------------------------------+
| | | Basic | Diluted | | | Basic | Diluted | | | Basic | Diluted |
+--------------+----------+----------+----------+--------+----------+----------+----------+--------+----------+----------+----------+
| | | earnings | earnings | | | earnings | earnings | | | earnings | earnings |
+--------------+----------+----------+----------+--------+----------+----------+----------+--------+----------+----------+----------+
| | Earnings | per | per | | Earnings | per | per | | Earnings | per | per |
+--------------+----------+----------+----------+--------+----------+----------+----------+--------+----------+----------+----------+
| | GBP'000 | share | share | | GBP'000 | share | share | | GBP'000 | share | share |
+--------------+----------+----------+----------+--------+----------+----------+----------+--------+----------+----------+----------+
| Profit | 6,294 | 9.4p | 9.3p | | 5,033 | 7.5p* | 7.5p* | | 4,342 | 6.5p | 6.5p |
| before | | | | | | | | | | | |
| the | | | | | | | | | | | |
| deferred | | | | | | | | | | | |
| tax | | | | | | | | | | | |
| change | | | | | | | | | | | |
| arising | | | | | | | | | | | |
| from the | | | | | | | | | | | |
| withdrawal | | | | | | | | | | | |
| of | | | | | | | | | | | |
| industrial | | | | | | | | | | | |
| buildings | | | | | | | | | | | |
| allowances | | | | | | | | | | | |
+--------------+----------+----------+----------+--------+----------+----------+----------+--------+----------+----------+----------+
| Deferred | - | - | - | | (2,853) | (4.2)p | (4.2)p | | (737) | (1.1)p | (1.1)p |
| tax | | | | | | | | | | | |
| arising | | | | | | | | | | | |
| from the | | | | | | | | | | | |
| withdrawal | | | | | | | | | | | |
| of | | | | | | | | | | | |
| industrial | | | | | | | | | | | |
| buildings | | | | | | | | | | | |
| allowances | | | | | | | | | | | |
| and effect | | | | | | | | | | | |
| of | | | | | | | | | | | |
| exceptional | | | | | | | | | | | |
| items | | | | | | | | | | | |
+--------------+----------+----------+----------+--------+----------+----------+----------+--------+----------+----------+----------+
| Profit | 6,294 | 9.4p | 9.3p | | 2,180 | 3.3p | 3.3p | | 3,605 | 5.4p | 5.4p |
| attributable | | | | | | | | | | | |
| to equity | | | | | | | | | | | |
| shareholders | | | | | | | | | | | |
+--------------+----------+----------+----------+--------+----------+----------+----------+--------+----------+----------+----------+
* Underlying earnings per share.
+----------+------------+------------+------------+
| | Unaudited | Unaudited | Audited |
+----------+------------+------------+------------+
| | 28 | 28 | 52 |
| | weeks | weeks | weeks |
+----------+------------+------------+------------+
| | ended | ended | ended |
+----------+------------+------------+------------+
| | 9 | 10 | 27 |
| | January | January | June |
+----------+------------+------------+------------+
| | 2010 | 2009 | 2009 |
+----------+------------+------------+------------+
| Weighted | 66,942,819 | 66,938,628 | 66,939,333 |
| average | | | |
| number | | | |
| of | | | |
| ordinary | | | |
| shares | | | |
+----------+------------+------------+------------+
| Dilutive | 916,665 | 45,834 | 824 |
| effect | | | |
| of share | | | |
| options | | | |
+----------+------------+------------+------------+
| Fully | 67,859,484 | 66,984,462 | 66,940,157 |
| diluted | | | |
| weighted | | | |
| average | | | |
| number | | | |
| of | | | |
| ordinary | | | |
| shares | | | |
+----------+------------+------------+------------+
7 Ordinary dividends
+---------------+-----------+-----------+---------+
| | Unaudited | Unaudited | Audited |
+---------------+-----------+-----------+---------+
| | 28 | 28 | 52 |
| | weeks | weeks | weeks |
+---------------+-----------+-----------+---------+
| | ended | ended | ended |
+---------------+-----------+-----------+---------+
| | 9 | 10 | 27 |
| | January | January | June |
+---------------+-----------+-----------+---------+
| | 2010 | 2009 | 2009 |
+---------------+-----------+-----------+---------+
| | GBP'000 | GBP'000 | GBP'000 |
+---------------+-----------+-----------+---------+
| Final | 3,247 | 3,237 | 3,237 |
| dividend | | | |
| paid for | | | |
| the 52 | | | |
| weeks | | | |
| ended 27 | | | |
| June | | | |
| 2009 of | | | |
| 4.85p | | | |
| (52 | | | |
| weeks | | | |
| ended 28 | | | |
| June | | | |
| 2008: | | | |
| 4.85p) | | | |
+---------------+-----------+-----------+---------+
| Interim | - | - | 803 |
| dividend | | | |
| paid in | | | |
| respect | | | |
| of the | | | |
| 52 weeks | | | |
| ended 27 | | | |
| June | | | |
| 2009 of | | | |
| 1.20p | | | |
+---------------+-----------+-----------+---------+
| Amounts | 3,247 | 3,237 | 4,040 |
| recognised | | | |
| as | | | |
| distributions | | | |
| to equity | | | |
| holders | | | |
+---------------+-----------+-----------+---------+
The Directors have approved an interim dividend of 1.95p per share in respect of
the 28 weeks ended 9 January 2010. This will be paid on 31 March 2010 to
shareholders who are on the register of members on 5 March 2010. The shares will
be quoted ex-dividend on 3 March 2010.
8 Intangible assets
+--------------+-----------+
| | Unaudited |
+--------------+-----------+
| | computer |
+--------------+-----------+
| | software |
+--------------+-----------+
| | GBP'000 |
+--------------+-----------+
| Cost | |
+--------------+-----------+
| At 27 | 25,797 |
| June | |
| 2009 | |
+--------------+-----------+
| Additions | 433 |
| at cost | |
+--------------+-----------+
| At 9 | 26,230 |
| January | |
| 2010 | |
+--------------+-----------+
| Accumulated | |
| depreciation | |
| and | |
| amortisation | |
+--------------+-----------+
| At 27 | 20,947 |
| June | |
| 2009 | |
+--------------+-----------+
| Charge | 1,290 |
| for | |
| the | |
| period | |
+--------------+-----------+
| At 9 | 22,237 |
| January | |
| 2010 | |
+--------------+-----------+
| Net | 3,993 |
| book | |
| amount | |
| at 9 | |
| January | |
| 2010 | |
+--------------+-----------+
| Net | 4,850 |
| book | |
| amount | |
| at 27 | |
| June | |
| 2009 | |
+--------------+-----------+
9 Tangible assets
+--------------+-----------+
| | Unaudited |
+--------------+-----------+
| | property, |
| | |
+--------------+-----------+
| | plant |
| | and |
+--------------+-----------+
| | equipment |
| | |
+--------------+-----------+
| | GBP'000 |
+--------------+-----------+
| Cost | |
+--------------+-----------+
| At 27 | 181,461 |
| June | |
| 2009 | |
+--------------+-----------+
| Additions | 2,291 |
| at cost | |
+--------------+-----------+
| Disposals | (284) |
+--------------+-----------+
| At 9 | 183,468 |
| January | |
| 2010 | |
+--------------+-----------+
| Accumulated | |
| depreciation | |
| and | |
| amortisation | |
+--------------+-----------+
| At 27 | 118,701 |
| June | |
| 2009 | |
+--------------+-----------+
| Charge | 5,007 |
| for | |
| the | |
| period | |
+--------------+-----------+
| Disposals | (270) |
+--------------+-----------+
| At 9 | 123,438 |
| January | |
| 2010 | |
+--------------+-----------+
| Net | 60,030 |
| book | |
| amount | |
| at 9 | |
| January | |
| 2010 | |
+--------------+-----------+
| Net | 62,759 |
| book | |
| amount | |
| at 27 | |
| June | |
| 2009 | |
+--------------+-----------+
10 Retirement benefit obligations
The valuation of the Thorntons' Pension Scheme at 27 June 2009 has been updated
on an actuarial basis applying current discount and inflation rate assumptions
and incorporating the valuation of the plan assets at 9 January 2010. This has
led to an increase in the net deficit of GBP2.9 million from 27 June 2009.
In October 2009 and as part of the schedule of contributions agreed with the
Trustees to Thorntons' Pension Scheme, it was further agreed that in addition to
an annual contribution of GBP2.2 million, the Company would make an additional
contribution over each of the next three financial years equivalent to the
higher of either:
1. A third of any reduction in the net debt reported in the statutory accounts
for the years ending June 2010, 2011 and 2012; or
2. The ongoing annual contribution of GBP2.2 million multiplied by the
percentage increase in the annual dividend above a minimum of GBP4 million.
11 Cash flow from operating activities
a Cash generated from operations
+---------------------+-----------+-----------+---------+
| | Unaudited | Unaudited | Audited |
+---------------------+-----------+-----------+---------+
| | 28 | 28 | 52 |
| | weeks | weeks | weeks |
+---------------------+-----------+-----------+---------+
| | ended | ended | ended |
+---------------------+-----------+-----------+---------+
| | 9 | 10 | 27 |
| | January | January | June |
+---------------------+-----------+-----------+---------+
| | 2010 | 2009 | 2009 |
+---------------------+-----------+-----------+---------+
| | GBP'000 | GBP'000 | GBP'000 |
| | | | |
+---------------------+-----------+-----------+---------+
| Continuing | | | |
| operations | | | |
+---------------------+-----------+-----------+---------+
| Operating | 9,643 | 8,492 | 9,739 |
| profit | | | |
+---------------------+-----------+-----------+---------+
| Adjustments | | | |
| for: | | | |
+---------------------+-----------+-----------+---------+
| Depreciation | 6,297 | 6,136 | 11,572 |
| and | | | |
| amortisation | | | |
+---------------------+-----------+-----------+---------+
| Amortisation | (11) | - | (21) |
| of | | | |
| Government | | | |
| grants | | | |
| received | | | |
+---------------------+-----------+-----------+---------+
| Profit | (37) | (30) | (16) |
| on | | | |
| disposal | | | |
| of | | | |
| property, | | | |
| plant and | | | |
| equipment | | | |
+---------------------+-----------+-----------+---------+
| Share-based | 181 | 286 | 520 |
| payment | | | |
| charge | | | |
+---------------------+-----------+-----------+---------+
| Operating | 16,073 | 14,884 | 21,794 |
| cash flow | | | |
| before | | | |
| working | | | |
| capital | | | |
| movements | | | |
+---------------------+-----------+-----------+---------+
| Changes | | | |
| in | | | |
| working | | | |
| capital | | | |
+---------------------+-----------+-----------+---------+
| Increase | (1,106) | (425) | (1,063) |
| in | | | |
| inventories | | | |
+---------------------+-----------+-----------+---------+
| (Increase)/decrease | (7,542) | (3,800) | 1,072 |
| in trade and other | | | |
| receivables | | | |
+---------------------+-----------+-----------+---------+
| Increase | 12,863 | 14,063 | 430 |
| in | | | |
| payables | | | |
+---------------------+-----------+-----------+---------+
| Increase | 264 | 16 | 198 |
| in | | | |
| provisions | | | |
+---------------------+-----------+-----------+---------+
| Decrease | (357) | (206) | (3,281) |
| in | | | |
| post-employment | | | |
| benefits | | | |
+---------------------+-----------+-----------+---------+
| Cash | 20,195 | 24,532 | 19,150 |
| generated | | | |
| from | | | |
| operations | | | |
| before | | | |
| taxation | | | |
+---------------------+-----------+-----------+---------+
| Corporate | (895) | (803) | (2,012) |
| taxation | | | |
+---------------------+-----------+-----------+---------+
| Cash | 19,300 | 23,729 | 17,138 |
| flows | | | |
| from | | | |
| operating | | | |
| activities | | | |
+---------------------+-----------+-----------+---------+
b Cash and cash equivalents for the cash flow statement
+-------------+-----------+-----------+---------+
| | Unaudited | Unaudited | Audited |
+-------------+-----------+-----------+---------+
| | 28 | 28 | 52 |
| | weeks | weeks | weeks |
+-------------+-----------+-----------+---------+
| | ended | ended | ended |
+-------------+-----------+-----------+---------+
| | 9 | 10 | 27 |
| | January | January | June |
+-------------+-----------+-----------+---------+
| | 2010 | 2009 | 2009 |
+-------------+-----------+-----------+---------+
| | GBP'000 | GBP'000 | GBP'000 |
| | | | |
+-------------+-----------+-----------+---------+
| Cash | 5,292 | 5,412 | 588 |
| and | | | |
| cash | | | |
| equivalents | | | |
+-------------+-----------+-----------+---------+
12 Reconciliation of movement in net debt
+---------------------+-----------+-----------+----------+
| | Unaudited | Unaudited | Audited |
+---------------------+-----------+-----------+----------+
| | 28 | 28 | 52 |
| | weeks | weeks | weeks |
+---------------------+-----------+-----------+----------+
| | ended | ended | ended |
+---------------------+-----------+-----------+----------+
| | 9 | 10 | 27 |
| | January | January | June |
+---------------------+-----------+-----------+----------+
| | 2010 | 2009 | 2009 |
+---------------------+-----------+-----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
| | | | |
+---------------------+-----------+-----------+----------+
| Increase/(decrease) | 4,704 | 4,324 | (500) |
| in cash and cash | | | |
| equivalents | | | |
+---------------------+-----------+-----------+----------+
| Cash | 8,840 | 10,307 | 5,097 |
| flows | | | |
| from | | | |
| decrease | | | |
| in debt | | | |
+---------------------+-----------+-----------+----------+
| Change | 13,544 | 14,631 | 4,597 |
| in net | | | |
| debt | | | |
| resulting | | | |
| from cash | | | |
| flow | | | |
+---------------------+-----------+-----------+----------+
| Inception | (1,498) | (2,670) | (3,007) |
| of new | | | |
| finance | | | |
| leases | | | |
+---------------------+-----------+-----------+----------+
| Movement | 12,046 | 11,961 | 1,590 |
| in net | | | |
| debt in | | | |
| the | | | |
| period | | | |
+---------------------+-----------+-----------+----------+
| Net | (26,674) | (28,264) | (28,264) |
| debt | | | |
| at | | | |
| beginning | | | |
| of period | | | |
+---------------------+-----------+-----------+----------+
| Net | (14,628) | (16,303) | (26,674) |
| debt | | | |
| at end | | | |
| of | | | |
| period | | | |
+---------------------+-----------+-----------+----------+
13 Related party transactions
There are no related party transactions requiring disclosure in the condensed
set of financial statements.
14 Seasonality
Sales are subject to seasonal fluctuations, with peak Christmas demand in the
second quarter of the year. In the year ended 27 June 2009, the 28-week period
to 10 January 2009 represented 60.0% of annual sales.
The Directors confirm that this set of financial statements has been prepared in
accordance with IAS 34 as adopted by the European Union, and that the interim
management report herein includes a fair review of the information required by
DTR 4.2.7 and DTR 4.2.8.
On behalf of the Board
Mike Davies Mark Robson
Chief
Executive Finance Director
16 February 2010
Board of Directors and principal advisors
Introduction
We have been
engaged by the Company to review the set of financial statements in the
half-yearly financial report for the 28 weeks ended 9 January 2010, which
comprises the consolidated income statement, consolidated statement of
comprehensive income, consolidated statement of changes in equity, consolidated
balance sheet and consolidated statement of cash flows as at 9 January 2010,
and the comparative figures and associated notes. We have read the other
information contained in the half-yearly financial report and considered whether
it contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
Directors'
responsibilities
The half-yearly financial report is the responsibility of,
and has been approved by, the Directors. The directors are responsible for
preparing the half-yearly financial report in accordance with the Disclosure and
Transparency Rules of the United Kingdom's Financial Services
Authority.
The annual financial statements of the Group are prepared in
accordance with IFRSs as adopted by the European Union. The set of financial
statements included in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34, 'Interim financial
reporting', as adopted by the European Union.
Our responsibility
Our
responsibility is to express to the company a conclusion on the condensed set of
financial statements in the half-yearly financial report based on our review.
This report, including the conclusion, has been prepared for and only for the
company for the purpose of the Disclosure and Transparency Rules of the
Financial Services Authority and for no other purpose. We do not, in producing
this report, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save
where expressly agreed by our prior consent in writing.
Scope of
review
We conducted our review in accordance with International Standard on
Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial
Information Performed by the Independent Auditor of the Entity' issued by the
Auditing Practices Board for use in the United Kingdom. A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK and
Ireland) and consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Conclusion
Based on
our review, nothing has come to our attention that causes us to believe that the
condensed set of financial statements in the half-yearly financial report for
the 28 weeks ended 9 January 2010 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by the European
Union and the Disclosure and Transparency Rules of the United Kingdom's
Financial Services Authority.
PricewaterhouseCoopers LLP
Chartered Accountants
Leeds
16 February 2010
Notes:
(a) The maintenance and integrity of the Thorntons PLC web site is the
responsibility of the Directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the Interim Report
since it was initially presented on the web site.
(b) Legislation in the United Kingdom governing the preparation and
dissemination of financial information may differ from legislation in other
jurisdictions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UNRNRROAUAAR
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