Swindon-based retail group WH Smith achieved a first-half pre-tax profits increase of 5% despite falling sales.
The results, the last under departing boss Kate Swann, show profits reached £69m for the six months to 28 February on group total sales on a like-for-like basis own 5%.
Overall, but gross margin improved 160 basis points, helped by cost cutting.
WH Smith’s travel operations in airports, railway stations and motorway service areas performed well with profits up 7%, outperforming the core high-street stores where pre-tax profit grew just 2%.
Chief executive Kate Swann, who is standing down in July, said: “We expect the trading environment to remain challenging however the business is in good shape and is well positioned for continued growth in both the UK and internationally.”
Ms Swann is credited with turning around the business by streamlining operations. Prior to her arrival the group was seen by analysts as losing its prominent position among UK retailers. Shares in the group have risen by 51% in the past three years.
Steve Clarke, managing director of the company’s High Street division will take over as chief executive on July 1.
The company has also gained a foothold in the Chinese market – it is set to open 30 kiosks as part of a total of 121 units either opened or won in its international division.
