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Food & drink

Hotel Chocolat sweetens investors with maiden results

Shares rose in early deals after the luxury chocolate group posted a 181% rise in pre-tax profits

Hotel Chocolat Group plc (LON:HOTC) sweetened investors today, as shares rose more than 7% and it unveiled a 181% increase in pre-tax profits for its financial year to June 26.

It is the luxury confectioner's first set of results since it listed on AIM in May and it said it had made good progress in growing the number of its stores and developing its digital offering.

The group now has 83 stores having opened seven new ones in the year and its new website is on track to launch in the first half of the current financial year.

The company says this digital expansion will make it easier for people to send chocolates as gifts on smartphones and tablets, in an increasingly mobile world.

The firm posted pre-tax profit before exceptionals of £8.2mln compared to £2.9mln in 2015 on revenues, which were 12% higher at £91.1mln compared to £81.1mln in 2015.

Co-founder and chief executive Angus Thirlwell said: "Our plans for the peak winter season are well set and I am confident that our Christmas ranges will be our best ever, as customers continue to appreciate our "more cocoa, less sugar" approach throughout all our categories."

He added: "Our strategy remains on track and our continued innovation and focus on customer happiness aim to deliver increased sales, combined with disciplined capex and a tight control on costs with the goal of improving returns."

Shares added 7.69% to 245p.

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