Thorntons has revealed it is on track to post full-year profits in line with market expectations and that it is close to refinancing its debt.
Ahead of its fourth quarter trading update next week, the confectioner said it expected full-year pre-exceptional profit before tax to be in line with consensus analyst forecasts of £7.1m – compared with £4.7m last year.
After falling in the third quarter, it also said sales through the supermarkets and other retailers had returned to strong growth, increasing by double-digits in the latest quarter.
At the same time, Thorntons revealed it was close to refinancing its debt and would shortly confirm new banking facilities of £75m with existing banks, running through to October 2018. The current £57.5m facility runs until October 2015.
The new banking facility was better adapted to the needs of the business as it moves from being a retailer to a supplier with a retail operation, it said.
Thorntons said the refinancing would require it to amend a self-imposed borrowing limit at a general shareholder meeting to be held at the end of July. Once the limit has been amended, it expects to finalise the banking facility.