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Chocolate retailer Thorntons has reported a 36.5 per cent rise in annual pre-tax profits, having reversed declining sales in the first quarter.

In a statement today the company confirmed that its pre-tax profits climbed to £7.1 million over the 53 weeks ending June 30th. In 2006, Thorntons had reported annual pre-tax profits of £5.2 million.

Thorntons said that stronger sales had been achieved across the business, with revenue increasing by 5.3 per cent to £186 million over the year.

Company bosses said they had achieved three objectives outlined at the start of the year, to revitalise sales, reverse the decline in profits reported in the first quarter and to complete the restructuring of Thornton's board.

Thorntons said that after a weak start to the second quarter, which it blamed on hot weather, the 7.6 per cent drop in overall sales for the first quarter was transformed into an increase of 2.1 per cent by the end of the period.

Sales growth of 11.6 per cent and 26.2 per cent was subsequently achieved across the business over the third and fourth quarters respectively.

Total sales across Thorntons' own stores climbed by 1.7 per cent to £129.2 million over the year, with the company stressing that investments made in its outlets over the period were "beginning to bear fruit".

Sales within Thorntons' franchise stores also grew, while its online business Thorntons Direct also sold more chocolates following the launch of the company's new website. The site now allows customers to choose their favourite treats in a box design and size to suit their individual tastes and Thorntons expects the business to grow further as internet shopping becomes increasingly popular.

Commenting on the results, Thorntons' chairman John von Spreckelsen said: "This has been a significant year for Thorntons in which we have made substantial progress in returning the company to growth."

But he added: "While we are encouraged by our success, we believe that there is further substantial progress to be made."