WH Smith boosted by travel stores

Apr 17 2008

RETAILER WH Smith have reported more difficulties on the high street, but its problems have been offset by higher sales in its travel division.
It has today posted an 8% rise in half-year profits and the company remains confident about its full-year performance, despite the uncertain economic environment.
Its travel division, which includes 433 units at motorway service areas, airports and train stations, saw profits increase by 13% to £17 million. However the profits at its 546 high street stores fell by £1m, to £50m.
Today’s overall profits figure came in ahead of the £60 million consensus forecast in the City.
Nick Bubb, an analyst at Pali International, upgraded his full-year profit forecast by £2 million for the full year, to around £75 million.
He said: “Management express their usual caution about the retail outlook with the interims today, but they have managed to increase profits and earnings very well over the last few years despite falling like-for-like sales.”
Mr Bubb said the company had done well by engineering better margins and growing the travel division.