WH Smith 'well-positioned' for future growth

(Sharecast News) - Retailer WH Smith said on Wednesday that it was "well-positioned for future growth" as a pure-play travel retailer after the segment turned in a strong H1 performance. WH Smith said total group revenues were up 3% at £951.0m, with total travel revenues improving 6% year-on-year at £712.0m. Travel revenues rose 7% in the UK, 5% in North America and 15% in the rest of the world.

Headline group pre-tax profits slipped from £46.0m to £45.0m as a £7.0m drop in high street trading profits to £15.0m offset a 12% jump in total travel trading profits to £56.0m.

WH Smith, which agreed to the sale of its High Street business on 28 March, also declared an interim dividend of 11.3p per share, reflecting "strong trading and cash generation" combined with its confidence in its future growth prospects.

Chief executive Carl Cowling 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.

"The second half of the financial year has started well, and we remain on track to deliver full-year results in line with market expectations. 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."

As of 0850 BST, WH Smith shares were down 1.14% at 939.64p.

Reporting by Iain Gilbert at Sharescast.com