WH Smith posts increase in half year revenue
WH Smith has posted a 3% increase in group revenue to £951 million in six months to 28 February.
This included a 6% uplift to £712 million in its travel business, where it operates stores at rail stations and airports, and a 7% decline to £239 million in its high street stores.
During the period, WH Smith posted a group pre-tax profit of £45 million compared to £46 million in the prior year.
While travel trading profit increased by 12% to £56 million, high street profit fell to £15 million from a prior £22 million.
Never Miss a Retail Update!Last month, the retailer announced that it had agreed the sale of its high street business to Modella Capital, the owner of Hobbycraft, for £76 million.
Carl Cowling, WH Smith group chief executive, said: “The group has had a good first half with consistent like-for-like growth across all our travel businesses, and we are well-positioned for the peak summer trading period.
“Our UK travel business has had a strong half with trading profit 8% ahead of last year.
“In North America, we are beginning to see the benefits of our work to re-engineer our space and improve our retail offer, with like-for-like revenue growth of 3% in the period.
“We continue to win new space, and I am delighted to announce that we have recently secured a significant contract at a major East Coast airport.
WH Smith said the second half of its financial year has started well and that it remains on track to deliver full year results in line with expectations. Looking ahead, the retailer said it has a new store pipeline of over 90 sites, including over 70 in North America. It expects to launch over 60 new stores in the current financial year.
Cox added: “We are mindful of the increased level of geopolitical and economic uncertainty, however given the resilient nature of our business, we are well-positioned to benefit from the growth opportunities in global travel retail.”
