Home Business News WH Smith profits fall

WH Smith profits fall

by LLB Reporter
11th Apr 19 9:18 am

WH Smith’s half year profits have fallen by 21% after being hit with costs due to their restructuring and acquisition of US travel retailer, InMotion.

In the six months to 28 February the retailers pre-tax profit fell from £82m to £65m.

The high street chain booked £9m in costs over the InMotion deal, and £7m over a restructuring programme.

WH Smith outlined in October a cost saving programme that would see a handful of store closures.

Sales were up by 8% to £695m, or 1% on a like-for-like basis. In travel the retailer’s standout operation, total revenue rose 18% and 3% on a comparable basis, and profit was up 7% to £44m.

High street revenue dropped 1% and like-for-like revenue was down 2%.

Boss Stephen Clarke said, “The group has delivered a strong performance in the first half of the financial year.

“The integration of InMotion is progressing well. This acquisition doubles the size of our business outside of the UK, where we are now present in 99 airports and 30 countries.

“While there is uncertainty in the broader economic and political environment, we have made a good start to the second half of the financial year and the increase in the interim dividend by 8% reflects the board’s confidence in the outcome for the full year.”

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