Shares in UK chocolate retailer Thorntons plummeted today (21 December) after it warned its annual profits would miss expectations.

The value of the struggling high street confectioner’s shares dropped 36% to 24 pence after it forecast it would break even, compared to a previous outlook of GBP3.8m (US$6m) profit. It blames weak consumer confidence and promotions from competitors.

“Following continued weakness in consumer sentiment and high levels of promotional activity in the marketplace, the board now considers profits for its full year will fall short of current expectations,” Thorntons said.

“The board now believes that profit before taxation, exceptionals and impairment and onerous lease charges will be around break even for the 53 weeks ending 30 June 2012.

A further trading update will be issued on 12 January 2012, the company said.

In September the company booked a pre-tax loss of GBP1.1m (US$1.75m) for the fiscal year to 25 June, compared to pre-tax profits of GBP6.1m the year before.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Just Food Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Food Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now