THT Thorntons

TIDMTHT

RNS Number : 5269A

Thorntons PLC

23 December 2014

THORNTONS PLC

("Thorntons" or "the Company")

TRADING UPDATE

Thorntons announces that its UK Commercial channel within its FMCG division has faced challenges which have adversely affected its sales performance in the run up to Christmas. Meanwhile, the Retail division is currently experiencing like-for-like sales growth. Against a strong comparative period last year, the Board now anticipates a decline in sales in the UK Commercial channel for the second quarter of the current financial year. The Board now expects earnings for the full year to be below those achieved for the last financial year.

During the first half there have been two principal challenges. We have recently experienced a significant reduction in previously indicated orders from the major grocers who also took in stock later than anticipated. While there has been an overall decline, the performance in the grocers has been mixed with good growth in several of our major partners yet significant volume decline in some others where prior year sales of high-volume lines have not been repeated. We have also seen good growth in the convenience and high street sectors.

Secondly, despite extensive prior testing, we encountered significant short-term difficulties with our new centralised warehouse which resulted in disruption for all our customers. In particular in our UK Commercial channel we experienced lost and late sales with consequent missed promotional slots and reorders. Our warehousing and distribution facility is now working normally. The move to a centralised warehouse was essential to meet current and future business patterns and growth. This will result in improved capacity and quality of service for our customers in the future.

Timely management action has resulted in good control of costs and stocks. Christmas seasonal specialities have sold well and no significant excess seasonal stock is anticipated.

The Board remains confident in its strategy, multi-channel approach and ongoing transformation. A further trading update will be issued on 19 January 2015.

Ends

For further enquiries please contact:

Anthony Cardew / Georgina Hall, Cardew Group T: 020 7930 0777

This document contains certain statements that are forward-looking statements. They appear in a number of places throughout this document and include statements regarding our intentions, beliefs or current expectations and those of our officers, Directors and employees concerning, amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the business we operate. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this document and, unless otherwise required by applicable law, the Company undertakes no obligation to update or revise these forward-looking statements. Nothing in this document should be construed as a profit forecast. The Company and its Directors accept no liability to third parties in respect of this document save as would arise under English law.

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