WHSmith has reported a return to profit and said its flagship travel arm is in its “strongest ever position” after it bounced back in the wake of the pandemic.
WHSmith posted a group profit before tax of £63m last year, compared with a loss of £116m the year before. Revenues rocketed 58% to £1.4bn and the retailer was trading ahead of 2019 levels.
The bookseller, stationer and travel goods specialist said momentum has continued into the new financial year and total travel revenue in the 10 weeks to November 5 stood at 148% of that achieved three years ago.
While travel was the star, both parts of WHSmith’s business generated higher earnings. The retailer recorded a total travel trading profit of £89m, versus a loss of £39m, and high street trading profit improved to £33m from £19m.
The company, which has reinstated a dividend, said the current year had started well and it expects to make “significant progress”.
Chief executive Carl Cowling said: “2022 has been a successful year and we enter the new financial year with the group in its strongest-ever position as a global travel retailer with multiple growth opportunities across the world.
“We continue to grow our North American business at pace and we have a very strong pipeline of new store openings. In the current financial year, our North American business is set to become larger, in profit terms, than our UK high street business and we see significant opportunities to grow this business further.
“Our high street division, including our online businesses, delivered another resilient and profitable performance. These businesses continue to generate strong cash flow allowing us to invest across the group.
“The resumption of the dividend announced today reflects our strong current trading and the board’s confidence in future prospects.
“We have started the year well and, while there is economic uncertainty, travel patterns globally continue to improve and this, combined with the strength of the group’s growth opportunities, means we are well positioned for a year of significant progress in 2023.”
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