WH Smith reports profits rise after 'strong performance'

Image source, PA

WH Smith, the stationery and bookstore chain, has reported a rise in full-year profits after a "strong performance".

Pre-tax profits for the year to 31 August were 拢112m, up 9% on the previous year.

The company also announced an additional share buyback of "up to 拢50m".

However, group like-for-like sales, which strip out the effect of new store openings, fell 3%.

Group chief executive Stephen Clarke said: "The Group has delivered a strong performance with EPS [earnings per share] up 18% year on year."

The retailer's travel division - stores located mainly in airports, railway stations, motorway service areas and hospitals - experienced a "record year", with profits up 11% to 拢73m, Mr Clarke said.

As the business was "highly cash generative", WH Smith felt able to extend its share buy back scheme by up to 拢50m.

It completed an earlier 拢50m return of cash to shareholders on 13 October.

WH Smith also increased its full-year total dividend by 14% to 35p.

The company aims to cut costs by 拢21m over the next three years.