Wednesday, April 22, 2020

Share Analysis of Thorntons Plc free essay sample

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). We will write a custom essay sample on Share Analysis of Thorntons Plc or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 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. Thorntons 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 factors such as the management quality can also affect the share price. When the company is not doing well for a period of time, the chief executives may lose credibility and may step down their positions. With the appointment of the new executives, the market will awaits the delivery of improved result and therefore the share price will rise.