Bookseller and stationer WHSmith notched up 6 per cent sales growth between March 1 and May 31, but that reflected recent acquisitions.

At WHSmith’s core chain like-for-likes fell 2 per cent. Like-for-likes at high street shops were down 3 per cent and travel stores up 1 per cent.

Pali International’s Nick Bubb was confident in his full-year profit forecast of£83 million and said: “The shares have fallen back to 400p having had a good run up to mid-May, but we still think the long-term growth/bid story is attractive and retain a buy, with a 475p sum of the parts valuation.”

Citi, recommending hold, noted: “WHSmith’s significant cost saving, gross margin track record and an accelerated revenue trajectory in the high-return travel business provide some indication of how management might deliver on its new management incentive plan.”

Investec, advising buy, said: “Against an increasingly difficult consumer market, the stock has some more defensive qualities than many of its sector peers.”

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