16th Apr 2015 06:47
LONDON (Alliance News) - WH Smith PLC on Thursday said its pretax profit ticked higher in the first half of its financial year, as its trading profit in both its travel and high-street divisions increased on the back of a big improvement in margins, despite total sales in the high-street arm falling.
The FTSE 250-listed retailer said its pretax profit in the six months to the end of February rose 4.3% to GBP72 million from GBP69 million a year earlier. Revenue in the half fell slightly to GBP611 million from GBP613 million a year earlier, as sales in its travel division rose 7% but its high street division saw sales fall 5%.
The group's gross margin in the half improved by 120 basis points, including a 180 basis point improvement in the high-street division, meaning trading profit in both divisions improved in the half. Travel trading profit rose by 6.7% to GBP32 million from GBP30 million, while high-street trading profit rose to GBP50 million from GBP49 million, it said.
WH Smith maintained its interim dividend payout at 1 pence per share and said it is making good progress with the GBP50 million cash return to shareholders announced in October, with GBP22 million so far returned.
"The group has delivered another strong performance. We are seeing improving trends across all formats in Travel, and in High Street our profit focused strategy continued to deliver over the key Christmas trading period," said Stephen Clarke, WH Smith's chief executive.
"Looking ahead, we will continue to focus on profitable growth and cash generation while investing in new opportunities in both Travel and High Street that position us well for the future," Clarke adds.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Wh Smith