Hotel Chocolat meltdown

HOTEL Chocolat nearly halved in value after it warned of a slowdown in the UK and a £26m hit overseas.

On a brutal day for investors, the confectionery group said it expects to have made a loss in the year to June 26.

The firm booked a £3m hit from closing all five of its US stores and a further £23m write- off from a business venture in Japan. Shares tumbled 44.9pc, or 105.5p, to 129.5p, leaving Hotel Chocolat worth just £ 178m. the business’s cofounder and chief executive Angus thirlwell said the company is continuing to open stores in the UK and increasing its focus on drinkable chocolate.

But he warned UK sales growth will be slower over the year ahead compared with the 35pc rise seen last year.

The group will move to being online only in America after shutting its five stores in a move affecting almost 50 staff. Hotel Chocolat said it aims to keep its minority stake in the Japanese joint venture, but will pause any further spending on the business for now.

‘In response to the change in the global macroeconomic environment, investment levels in the USA and the Japan joint venture will be materially reduced, with ongoing investment limited to essential working capital only,’ it said.