FY21 revenue of £165 million

Since the previous trading update in May, Group trading has remained strong. With all channels open, Group sales for the 10 weeks from 19 April 2021 to 27 June 2021 grew 34 per cent compared to the same period in 2019, and 63 per cent compared to the same period in 2020 when all physical locations were closed.

Having grown the UK customer database by 66 per cent to 3 million in the 18 months since December 2019, digital and subscription sales are now a substantially larger proportion of the Group's total revenue and have remained so after full store channel reopening. Increases in visits, conversion, and average order value have combined to substantially increase customer lifetime value (LTV).

In the USA, product sales increased by 62 per cent on the prior year with over 75 per cent of sales achieved directly through the Group's US website.

In Japan, the Group's joint-venture partnership grew sales by 277 per cent on the prior year, achieving over 50 per cent data capture from new customers.

UK store performance since the reopening on 12 April has been encouraging. Strong trading in smaller cities and market towns has largely offset lower footfall in commuter and tourist locations. Following the end of the first lockdown in July 2020, sales from stores progressively increased from July to October and the Board anticipates a similar improvement in the coming months.

30% of the UK store estate has already been renegotiated to lower rents, either in the form of a lower fixed amount, or a reduced variable percent of sales. The remaining 70% of the estate has a lease event due in the next 24 months.

Having raised £22million of new equity in March 2020, the Group has invested the capital in service for future growth as follows:

The Board now anticipates underlying pre-tax profit will be higher than its previous expectations. Preliminary results are scheduled for 28 September 2021.

The Group has committed to repay the full amount of furlough support received in the financial year (£3.1m).

The Group remains well capitalised with cash on hand and access to a £25m 'CLBILS' Revolving Credit Facility with Lloyds Bank, that expires December 2021. To date, the Group has made no drawings against the facility.

The strength of the Hotel Chocolat brand has made it possible to serve customers in a wider range of ways, which has substantially increased LTV. Combining this with the enhanced ability to recruit larger numbers of customers on an attractive return, has driven these strong results, including underlying pre-tax profits, which are expected to be higher than previous expectations.

Strong digital and subscription growth models work in harmony with a network of brand-building stores designed to drive deep customer-engagement and be a scaled and profitable source of new and future customer generation.

The outlook for the wider economy is improving. Whilst some uncertainty remains with regards to the impact of any ongoing or future Covid-19 restrictions, the Board is encouraged by both the performance of the brand during a period of significant challenges and varying restrictions, and the strong potential for growth and success in the future.