Books and stationery retailer WHSmith again revealed disappointing sales and profits and warned that Christmas trading may also be difficult.
Group chief executive Richard Handover said: ' UK retail has had a difficult year. In the second half we have seen a good performance in the books category, and our stationery and news and express categories have traded satisfactorily.'
Retail sales in the UK fell 2 per cent to£1.48 billion and UK retail profits fell 7 per cent to£90 million for the year to August 31.
Handover was equally pessimistic looking forward. 'This year has started the way we finished last year, with extremely testing trading conditions. As we enter the all- important Christmas period, our markets remain intensely competitive,' he said.
Handover will be replaced on November 1 by Kate Swann, former managing director of Argos. Handover will then become chairman.
City analysts were disappointed with the figures, and WHSmith shares fell 2 per cent in the wake of the announcement. CSFB said in a note: 'It is evident that having agreed the removal of one problem child in the form of US travel, the UK retailing business remains troublesome.
'We do not yet know when a new strategic vision for the group will be delivered, but we would assume later rather than earlier in the New Year.'
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