WH Smith profits exceed market forecasts

WH Smith best known for selling books, stationery, magazines, newspapers and entertainment goods, has today announced that full-year profits are ahead of market forecasts. The group expects the key Christmas trading season to be very competitive but said they have planned accordingly.

The group, which has 542 high street stores across the UK, said pretax profit before exceptional items was £61 million for the 12 months to the end of August, up nearly 30% from the previous year’s £51 million, on revenue down 3% at £1.29 billion.

The bookseller had been expected by analysts to announce profit of roughly £62.6 million, with revenue seen at about £1.28 billion according to Reuters Estimates.

Chief Executive Kate Swann said another year of strong profit has been delivered, she added that their High Street businesses made further progress in accordance with plans and their travel business grew strongly.

The company did not provide an update on current trading but mentioned that an interim management statement on November 15 will cover the period from September 1 to November 10.

The retailer also said in August that its high street shops would deliver a strong performance, following stricter cost controls. The group also expects its annual results to be near the top end of analysts’ forecasts, boosted by a strong performance from its outlets at airports and train stations.

The company’s shares have outperformed the retail sector by over 22% so far this year. The company is valued at approximately £768 million.

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