15th Oct 2015 07:41
LONDON (Alliance News) - WH Smith PLC on Thursday announced a share buyback as it reported a rise in pretax profit in its recently-ended financial year, boosted by strong sales in its travel division, and it said its struggling high street business also picked up in the second half.
WH Smith shares were up 3.6% at 1,597.00 pence in early trade.
The books and stationery retailer reported an 8% rise in pretax profit in the year ended August 31 to GBP121 million from GBP112 million the year before, as revenue grew 1% to GBP1.18 billion from GBP1.16 billion but like-for-like sales remained flat.
WH Smith said it will buy back shares in the company of up to GBP50 million, following the completion of a share buyback for the same amount which it announced in October last year. It also will pay a total dividend of 39.4 pence for the year, a 13% increase on the 35.0p it paid the prior year.
WH Smith said its travel business continued to perform well with strong sales across all channels in the UK reflecting ongoing investment and growth in passenger numbers, while its high street business saw a stronger second half in its core stationery and books categories.
Travel sales were up 9% in the year, or 4% on a like-for-like basis, and high street sales fell 4%, or 3% on a like-for-like basis.
Gross margin also improved by 90 basis points. The company said it delivered GBP11 million in cost savings, in line with plan, and it increased its cost savings target to GBP20 million over the next three years.
"Looking ahead, our focus will remain on profitable growth, cash generation, investing in new opportunities and evolving our customer proposition, all to ensure we are well-positioned for the future," Chief Executive Stephen Clarke said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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