Retailer WH Smith has notched up a 16% rise in annual profits as its travel arm continued to drive sales higher.
The group reported underlying pre-tax profits of £166 million for the year to August 31, up from £143 million the previous year.
Trading profits jumped by 15% at its shops based in railway stations, airports andhospitals worldwide, to £189 million, with these stores in the UK seeing earnings leap by a fifth.
Earnings remained flat in its traditional high street business, at £32 million, despite a 2% drop in like-for-like sales thanks to cost-saving efforts.
The firm said it is focusing on growth in travel shops across North America, with a pipeline of around 60 new stores under its belt and the group bidding to take on another 15 across major US airports.
It is also continuing to expand its UK travel chain, having opened 14 sites over the past financial year, though it shut eight shops, and with aims to open around three to eight on a net basis over the year ahead.
But it continues to shrink its UK high street division, having shut 14 sites, leaving it with 500. It added that it has around 470 store leases due for renewal over the next three years, including 100 where it is in active negotiations with the landlord.
“We only renew a lease where we are confident of delivering economic value over thelife of that lease,” it said.
As we grow travel, the high street division will become a smaller part of the overall group
WH Smith said: “As we grow travel, the high street division will become a smaller part of the overall group.”
The high street business now accounts for around 15% of annual group trading profit, it confirmed.
However, WH Smith is seeking to breathe new life into its high street business by rolling out Toys R Us concessions nationwide, with 30 already opened and another 37 due to launch by Christmas.
It also recently announced it is bringing back vinyl records for the first time in more than 30 years across 80 high street shops.
Group chief executive Carl Cowling said: “The group has delivered an excellent performance throughout the year, particularly over the key summer trading period.
“While there is some economic uncertainty, we are confident that 2025 will be another year of good progress for the group.”
