WH Smith reported a higher annual revenue as robust travel demand propelled sales of its products ranging from sandwiches to books, sending the British retailer's shares up 11%.
WH Smith, a more than 230-year-old brand, said trading in the new financial year so far was in line with expectations.
Strong passenger numbers in the second half of the year, to 31 August, supported demand for WH Smith's product offerings – ranging from travel accessories, food and drinks to health and beauty – at airports.
SSP Group, which operates food outlets across airports and rail stations, said in July that it was optimistic about more people undertaking leisure travelling.
The travel industry has remained resilient in the face of high inflation and tight budgets, with data showing record air passenger numbers in the UK and the US during the summer months.
Multiple sporting events, including the Olympics, Wimbledon and football's European Championships also contributed to more people travelling to Europe.
Annual Highlights
Revenue for the year rose 7%, buoyed by strong travel demand across its UK and US markets and the introduction of new products.
The firm also said it received proceeds of £85 million (€100.7 million) from a buyout of its pension trust, while launching a £50 million (€59.2 million) share buyback.
Carl Cowling, group CEO, stated, “We have ended the financial year in a strong position, delivering a performance in line with our expectations with good growth across our Travel businesses. Our UK division performed particularly well over the peak summer trading period.”
Recently, the company announced the launch of Smith’s Kitchen – a new store format from its UK Travel business, offering a range of delicious dine-in and takeaway choices for customers.
News by Reuters, additional reporting by ESM.
