WH Smith has said a rebound in the global travel market and a resurgent performance on the high street helped it to swing back to profit.
The Swindon-headquartered retailer posted headline pre-tax profits of £61m for the year to August 31 against losses of £104m the previous year, when Covid-19 restrictions impacted its chain of stores including those in travel hubs worldwide.
WH Smith said its travel business sales had surged past pre-pandemic levels amid a steep rise in summer holidaymakers, 130% of 2019 revenue in the second half, or 92% on a like-for-like basis.
The firm's high street arm traded at 82% of 2019 levels in the final six months, or 83% on a comparable store basis.
Dividends were resumed for investors, with a final pay-out of 9.1p per share after the turnaround.
Across the company's UK travel division, which also includes hospital sites, sales in July and August jumped to 121% and 126% of 2019 levels, even with disruption at airports and caps to limit the number of passengers travelling.
WH Smith said: “Passenger numbers have recovered strongly, albeit with further recovery to go, and we are very well positioned to capitalise on the significant space growth opportunities across each of our markets.”
The group has been buoyed by expansion in the travel sector, having purchased US-based airport technology retailer InMotion in 2018.
The firm is currently rolling out 150 new stores across 16 countries, including 70 in North America and across airports such as Los Angeles, Salt Lake City, Brussels, Oslo and Melbourne.
Chief executive Carl Cowling said the brand had “significant scope” to expand further and bolster its position in the market.
Mr Cowling said: “2022 has been a successful year for WHSmith and we enter the new financial year with the group in its strongest-ever position as a global travel retailer with multiple growth opportunities across the world.”
The company added that trading had continued to be solid into the current financial year, with travel sales at 148% and high street sales at 87% of 2019 revenues in the 10 weeks to November 5.
Mr Cowling said: “We have started the year well and, while there is economic uncertainty, travel patterns globally continue to improve and this, combined with the strength of the group’s growth opportunities, means that we are well positioned for a year of significant progress in 2023.”
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