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Share Analysis of Thorntons Plc

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Share Analysis of Thorntons Plc
Part 2

The chocolate industry in UK
Britain really is a nation of chocolate lovers. Among the whole world, UK has the seventh highest consumption of chocolate. A British eats an average 17.49lbs of chocolate per year (The World Atlas of Chocolate, 2011). Switzerland takes the top spot. In Britain, an estimated 660,900 tones of chocolate are eaten per year which is an average of 11kg per person. The UK chocolate industry is worth £3.6billion and sales of chocolate just keep growing and growing. The chocolate industry is a fast growing industry in UK, and the competition among the main brands is getting more and fiercer. For the investors, it is important to know the market share and the share price information of a company. These information of Thontons PLC will be detailed in the following sector.

The market share of Thorntons PLC among other chocolate brands in UK
The figure below shows the market share condition of Throntons PLC among other chocolate brands in UK in a comparison of year 2010 and 2011 (Thorntons PLC, 2011). It indicates Thorntons is one of the leading chocolate brands and its market share is significantly growing in both boxed and inlaid boxed chocolate market. Thornton 's has grown its sales across Total Boxed Chocolates in the last year from £70m to £82m (+17%) and continues to be the leading branded inlaid boxed chocolate supplier with sales of £68m (+16%).From this aspect, Thorntons PLC is a great brand with a good reputation and it is a smart choice for the investors.
[pic] [pic]
Figure2.1 The market share of Thorntons among other chocolate brands in UK

Share price
To the investors, the best guide to the value of a company is its share price. Many different factors influence the share price of a company. Some factors such as interest rates, growth or recession in the economy and exchange rates do not have directive relationship with the company but are more to do with general sentiments about investing and the economy. Other


References: The world Atlas of chocolate. The history of chocolate. http://www.sfu.ca/geog351fall03/groups-webpages/gp8/history/history.html. [Accessed on 13 November, 2011] Yahoo Finance. The Charts interactive. http://uk.finance.yahoo.com/echarts?s=THT.L#symbol=tht.l;range=20070319,20111207;compare=^ftse;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=. [Accessed on 25 November, 2011] Robert, P. (2004). Financial Accounting for Non-Specialists. McGraw-Hill Education Financial times. Market data of Thorntons PLC. Financials. http://markets.ft.com/research/Markets/Tearsheets/Financials?s=THT:LSE. [Accessed on 26 November, 2011]
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