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Thorntons year profit falls, outlook tough

LONDON (Reuters) - Chocolate maker and seller Thorntons <THT.L> posted a 2.4 percent fall in year profit as own store sales fell and said it expected market conditions to remain tough.The 99-year-old firm, which issued a profit warning in May, said on Wednesday it made a profit before tax of 6.1 million pounds in the year to June 26. That compares with analysts' consensus forecast of 6.5 million pounds, according to Thomson Reuters I/B/E/S, and 6.3 million in 2009-10.

08 September 2010 06:40 GMT

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The group, which trades from around 600 stores, said overall revenue was flat at 214.6 million pounds.

Thorntons said its key challenge continues to be the own stores channel, which saw a 3.6 percent fall in sales.

"We have strengthened our senior retail management team and we believe that this, together with extensive product innovation and changes to the promotional and marketing programmes, should have a positive impact on trading in the lead up to Christmas," it said.

The firm said trading since the year-end had been in line with internal expectations.

Thorntons, which cut net debt to 26 million pounds during the year, maintained its total dividend payout at 6.05 pence.

Shares in the retailer, which have lost nearly a third of their value over the last six months, closed on Tuesday at 82.5 pence, valuing the business at 56.4 million pounds.

(Reporting by James Davey, editing by Mark Potter)

(c) Reuters 2012. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

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