Chocolate specialist Thorntons expects to deliver a net benefit of £5 million over the next six years following the decision to outsource its warehousing and distribution to supply chain business DHL, it was announced today.
One-off transition costs of up to £680,000 are expected to be incurred in the first 12 months of the six-year contract, but the deal is expected to save the chocolatier money in the long term.
Today’s announcement represents another major change to Thorntons’ operations following the decision in February to reassess the shape and size of its store portfolio.
Ex-Caffe Nero Managing Director Jonathan Hart, who became CEO of the group in November last year, will oversee the change of direction and is set to present his strategic review of the Thorntons business to analysts and major shareholders tomorrow.
A statement accompanying today’s supply chain news revealed that Thorntons has agreed and signed new committed bilateral revolving credit facilities totalling £57.5 million, replacing the existing £52.5 million arrangement which matures in August 2012.
Financial results for the 12 months to June 25th 2011, set to be announced later this year, will now show one-off costs of approximately £400,000 relating to the fees for organising the new bank agreements and writing off the previous facilities.