Robust sales at WHSmith's travel division helped it achieve a 15 per cent hike in profit before tax and exceptional items to £76 million for the year to August 31.
However, group like-for-likes slipped 2 per cent and high street like-for-likes fell 3 per cent. The company said this was in line with its strategic plan.
Like-for-like sales in its travel outlets rose 1 per cent and total sales in this area rocketed 22 per cent on the back of a series of acquisitions. Profit climbed 14 per cent to£41 million.
WHSmith’s total group sales increased 4 per cent and gross margin improved by 120 basis points year on year.
The general merchandise retailer also revealed that group finance director Alan Stewart intends to stand down to “pursue other business interests”. He will be replaced by retail finance director Robert Moorhead. Stewart will resign from the board on December 1.
Group chief executive Kate Swann said: “We have delivered another year of good profit performance. We have seen further strong performance from Travel with the integration of new businesses proceeding in line with our plan. In High Street, we continue to deliver our strategy to rebalance the mix of our business and rebuild our authority in our core categories.
“Given the current consumer environment, we are expecting a competitive Christmas trading season. We have planned accordingly.”
WHSmith acquired UNS Group during the period, comprising 72 retail units and eight Caffe Nuovo coffee shops in 62 hospitals. It also acquired 23 units in 11 airports from Alpha Retail UK and signed a franchise agreement with Road Chef to open a further 29 units, which it said “significantly enhances” its coverage of the motorway network. In addition, it completed the integration of Post Offices into 82 high street stores.
Like-for-likes in books and stationery remained flat in the period, while entertainment plummeted 18 per cent, which the retailer said is in line with its strategy to “reduce steadily” its presence in entertainment.
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