WH Smith first half profit edges higher

Retail group WH Smith said its first half pre-tax profit edged higher on the back of a sharp improvement in margins.

The company said its pre-tax profit in the six months to the end of February climbed 4.3% to £72m, even though revenue declined 0.3% to £611m, as a 5% fall in its high street division sales offset a 7% increase in sales in its travel arm.

The FTSE 250 group said its travel business’ trading profit rose 6.7% to £32m, while its high-street division saw trading profit edge 2% higher to £50m.

“We are seeing improving trends across all formats in Travel, and in High Street our profit focused strategy continued to deliver over the key Christmas trading period," said group chief executive Stephen Clarke.

He added WH Smith would continue to focus on growth and cash generation by investing in both divisions.

The retailer lifted its interim dividend payout 12% to 12.1p per share, adding £22m of the £50m cash return to shareholders announced in October had been returned so far.

WH Smith shares were down 0.78% to 1,391.00p at 10:11 on Thursday.