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Hotel Chocolat checks in with strong finish to 2016

Published: 20:59 17 Jan 2017 AEDT

Chocolate treats
The chocolate maker now has 90 shops in the UK.

Posh chocolate flogger Hotel Chocolat Group PLC (LON:HOTC) had a strong end to 2016, with stores seeing more customers filling their baskets more.

Group revenue for the 13 weeks to Christmas Day was up 16.2% year-on-year, or 14.6% on a constant currency basis.

Some of that was down to new shops coming on-stream – the group opened 10 new outlets in the second half of the year – but the group said the retail estate enjoyed increased footfall (customer visits) and an improvement in the number of items in a typical customer's basket.

Trading since December continues to be in line with management's expectations.

"The growing strength of the Hotel Chocolat brand has enabled us to perform well. Our seasonal ranges included many new innovations and our café drinks offer adds a new dimension to our experience," said Angus Thirlwell, co-founder and chief executive of Hotel Chocolat

"Being a UK manufacturer gave us the flexibility to maintain good stock availability right up to the end of the season,” he added.

Liberum Capital Markets described it as “a strong trading update”, with performance improving since October, when the company announced its preliminary results for fiscal 2015/6.

“Momentum across all areas of the group is strong and with the web site having recently been re-launched and double the number of stores having opened pre-Christmas than we expected for the full-year, bodes well for our FY expectations,” the broker said, though it has left its full-year (FY) forecasts unchanged.

That did not stop it upping its target price from 295p to 340p, some 40p above the current price.

“Hotel Chocolat is clearly a winner in the retail segment and with strong top-line growth accompanied by future efficiencies from capital projects, underpins our positive outlook,” it said.

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