Travel boosts WH Smith's growth as sales of major streets dry up

The performance of its travel business remains a positive for WH Smith as the decline of the British main street continues to weigh on its stores.

The British retailer announced Thursday its confidence for the coming year by increasing its interim dividend by 8% to 17.2 pence for the six months ended February.

He released results for the period that largely corresponded to a January update, with the increase in travel sales exceeding modest declines in its grocery business, which had nonetheless posted its second best performance over the past year. the last decade.

Travel sales amounted to £ 364 million, an increase of 18% – including 10% due to the acquisition of the US InMotion airport chain – and 3% on a like-for-like basis, increasing profits from division of 7% at 44m.

The turnover of its High Street business increased slightly to reach £ 331 million, a decrease of 1% in total and 2% on a like-for-like basis, which, according to the group, is its second best performance of the last decade. The division's profits were £ 48 million, down 4%, in line with expectations.

Stephen Clarke, Managing Director of WH Smith, hailed a "solid performance" of the company. He said that ongoing investments in the UK and abroad have resulted in the boom in travel.

"High Street has had one of our best commercial performances in recent years, despite the widely reported difficulties facing the UK's high street," he said.

"Despite the uncertainty in the wider economic and political environment, we have started well in the second half of the year and the increase of the interim dividend of 8% reflects the confidence of the board in the final result."

Total revenue amounted to GBP 695, up 8% and 1% on a like-for-like basis, while pre-tax income, excluding destocking of underlying costs, was down 1% to £ 82m.