Continuing success in Swindon-based retail giant WH Smith’s outlets in railways stations, airports and motorway services has helped increase annual profits by 9%.
The increase to £112m came despite a fall off in sales from its core high street stores which pushed total group sales down by 3% to £1.16bn.
The group, which has its headquarters at Greenbridge, has more than 1,300 stores – the vast majority in the UK and split roughly between the high street and travel-related locations. But while sales have continually inched down its traditional high street outlets, higher-margin product lines have maintained profits group.
At the same time it has continued to expand its travel division, which operates shops in airports, railway stations and motorway service areas.
Group chief executive Stephen Clarke said described the results for the year to August 31 as “a strong performance”.
“The distinct strategies for each of our businesses continue to deliver good profit growth,” he said. “We had another record year in Travel, with profits up 11% to £73m, driven by an increase in total sales of 4% and continued improvement in like-for-like sales, which were up 1% in the second half.
“In our high street business profits increased by 4% to £58m, demonstrating the continued success of our profit focused strategy.
“Looking ahead, our focus will remain on profitable growth, cash generation and investing in new opportunities that position us well for the future.”
He praised the contribution of the group’s workforce, saying: “It is important to acknowledge that this performance would not be possible without the continued commitment and hard work of all our colleagues across the business.”
WH Smith also announced a further share buyback of up to £50m and a 14% increase in the full year dividend.
Pictured: A WH Smith travel outlet at London's Victoria Station
