Thorntons' shares were in the spotlight last week on hopes it would have a good Easter, and despite some talk of problems with its online service, the chocolate retailer has produced a tasty update for investors.
It said that Easter was "satisfactory" and with a good performance at both Valentine's Day and Mother's Day, it expected full year profits would be ahead of the current market forecasts of £3.1m. Given Easter is still so close, however, it is still working its way through the details.
The slight blot was the company's - unsurprising - caution on the prevailing economy and its impact on consumer expenditure. It has been closing a number of its high street stores and focussing more on online sales and supplying supermarkets and other outlets.
Despite the caution, the update has lifted Thorntons 4.75p to 73.75p, a near 7% increase. Bethany Hocking at Investec said:
This continued momentum in the business is good news...and we happily reiterate our buy recommendation.
Philip Dorgan at Panmure Gordon kept his buy recommendation with a 100p target price:re.com
Thorntons is highly financially and operationally geared and the upside is therefore considerable. We believe that our forward year forecasts have considerable upside and we remain buyers because we believe that it can drive sales through a number of channels and that its profits will further benefit from a reduced cost base. We believe that historic levels of profitability are within reach.
