WH Smith boosted by strong performance at travel business
WH Smith has posted increases in full year sales and profit following a particularly strong performance at its travel business.
In the year to 31 August, total group revenue grew by 7% to £1.9 billion while headline profit before tax and non-underlying items climbed by 16% to £166 million.
Travel revenue, which covers stores in airports, rail stations and hospitals, rose by 11%, with growth of 12% in the UK, 9% in North America and 18% in the rest of the world. The business also reported a trading profit of £189 million compared to £164 million in the prior year.
Meanwhile, WH Smith’s high street business delivered a performance in line with expectations with trading profit remaining flat at £32 million and revenue declining to £452 million from a previous £469 million.
Carl Cowling, WH Smith group chief executive, said: “The group has delivered an excellent performance throughout the year, particularly over the key summer trading period.
“Our travel divisions are trading well with a particularly strong performance from our UK travel business, with trading profit up 20% to £122 million.
“We are making excellent progress in the UK as we continue to benefit from the rollout of our one-stop-shop format which is creating significant opportunities to further grow profitability.”
The retailer is currently eyeing growth in North America where it has recently won some significant new airport business, including stores at Dallas, Denver and Washington Dulles airports. It is also the preferred bidder for a further 15 stores across two major US airports.
Looking ahead, Cowling added: ““The new financial year has started well. While there is some economic uncertainty, we are confident that 2025 will be another year of good progress for the group.”
