17th Apr 2025 08:42
(Alliance News) - WH Smith on Wednesday reported a pretax loss for the first six months of financial 2025, but said it remains on course to meet market expectations for the full year.
The company reported a GBP42 million pretax loss for the six months ended February 28 against a GBP28 million profit for the prior year.
WH Smith also on Wednesday said Barclays Bank PLC will continue to conduct the GBP50 million share buyback programme that it launched back in September last year. WH Smith has repurchased GBP27 million so far under the programme, and Barclays will complete the remaining GBP23.3 million by September 12.
The Wiltshire, England-based firm is a travel retailer for news, books and convenience, with its largest stores in London Heathrow, London Gatwick and Birmingham airports.
The company's half year revenue however rose 3.0% to GBP951 million from GBP926 million the previous year. This is in addition to the company seeing its travel division revenue grow 6% over the first half, down from the 7% growth in the first quarter.
The company noted that its full-year results remain on track and in line with market expectations.
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."
Furthermore, the retailer declared a dividend of 11.3 pence per share, up from 11.0p the previous year, "reflecting strong trading and cash generation combined with the Board's confidence in the future growth prospects of the group."
On March 28 WH Smith announced it is selling its non-travel stores to Modella Capital Ltd, owner of Hobbycraft in a deal valuing GBP76 million. The retailer's name will disappear from UK high streets, replaced by new brand TGJones.
WH Smith noted that its travel trading profit rose 17% to GBP63 million in the first half, from GBP54 million the previous year.
Meanwhile, profit of its high street business slumped by 26% to GBP20 million, weeks after revealing it is selling its high street division to focus instead on its travel outlets.
The company pointed to planned stores in the US cities of Albuquerque, Dallas and Portland, as part of a 26-strong group of stores coming soon across its North American estate. WH Smith also won a "significant contract at a major East Coast airport" in the US.
After its September 2024 announcement of the firm's GBP50 million buyback with Barclays Bank PLC, as of Tuesday GBP27 million shares have been repurchased.
WH Smith shares were down 0.7% to 934.50 pence in London on Thursday morning, having closed down 1.2% on Wednesday.
By Olivia Mason-Myhill, Alliance News reporter
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