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- WH Smith plans to open more than 90 new stores in its global travel division
WH Smith is pressing ahead with the expansion of its travel division and plans to open more than 90 new stores in train stations, airports and hospitals around the world.
Across the UK, the retailer opened 14 stores last year but closed eight as it continues to tilt its portfolio towards travel centers and away from its traditional high street presence.
The chain posted an underlying pre-tax profit of £166m for the year to August 31, up from £143m a year earlier. Group revenue rose 7 per cent to £1.9bn.
Growth plans: WH Smith continues with its travel branch expansion plans
WH Smith saw trading profits rise 15 per cent in its travel division during the period.
Profits were flat at £32m at the group’s conventional brick-and-mortar stores, an average fall of 2 per cent in like-for-like sales. Revenue at the retailer’s stores fell to £452m, down from £469m a year ago.
WH Smith Stock fell 4.38 per cent or 57.00 pence to 1,244.00 pence on Thursday.
The retailer said it planned “a year of investment” in its Funky Pigeon online greeting card platform, with higher levels of spending on the platform and brand this year.
WH Smith plans to open 90 new stores this year, 60 of them in North America.
It proposed a final dividend of 22.6p, bringing the total to 33.6p for the year, up from 28.9p a year ago.
Carl Cowling, group chief executive, said: “The group has delivered excellent performance throughout the year, particularly during the key summer trading period.”
‘Our most exciting growth opportunity is in North America. We are very pleased to have recently won some important new airport business, including those in Dallas, Denver and Washington Dulles, and we are the preferred bidder for 15 other stores at two major US airports.
“Our store opening program is on track and we already have a pipeline of new stores of around 60 stores already won.”
He 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.”
Russ Mould, chief investment officer at AJ Bell, said: “Relatively modest growth in the key North American market and underlying earnings per share, as well as revenue slightly below WH Smith consensus expectations, appear to have disappointed investors.
“Full-year results were also a bit of a mess with fairly significant non-recurring costs, including impairments related to software and supply chain upgrades and provisions for loss-making contracts, impacting the headline numbers.”
He added: ‘Performance followed the same trend as the last decade, with the travel sector driving growth and high street operations at a standstill. The focus remains on achieving efficiencies.
“Selling travel essentials to captive audiences at airports and train stations has been a very lucrative business for WH Smith, except during the pandemic, but today’s figures are a reminder that the company is not immune to some turbulence in the path”.
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