WHSmith to roll out travel bookshops after profit lift

Alongside continued cost control and efficient use of store space, a strong showing by WHSmith’s travel arm helped lift group profit before tax and exceptionals 15 per cent to£76 million in the year to August 31.

While like-for-likes slipped 2 per cent across the group and 3 per cent at high street stores, they rose 1 per cent at the travel business. Total travel sales rocketed 22 per cent and profit climbed 14 per cent to£41 million.

The bookseller and stationer said it will open another six stores under the specialist bookstore format by Christmas, bringing the total to 15. Group chief executive Kate Swann said: “We have seen further strong performance from travel with the integration of new businesses proceeding in line with our plan. In high street, we continue to rebuild our authority in our core categories.”

Last year WHSmith strengthened its travel division with the acquisitions of 72-strong hospital store group UNS and 23 units in airports from Alpha Airports.

Analysts believe its travel arm positions it well in tough trading conditions. Investec analyst David Jeary said: “WHSmith has added another string to its bow in the form of new ventures that will support top-line growth and further leverage central costs. The majority are in the travel division, where competitive pressures are less intense.”

Swann warned that she expects a competitive Christmas trading season, but analysts were confident about the outlook.

Teathers analyst Paul Deacon said: “The company’s defensive, low-ticket product offering is likely to prove resilient and the fact that the strategy remains strongly focused on cost and margin management as a driver of the bottom line is also useful.”