WH Smith reports profits rise after 'strong performance'
WH Smith, the stationery and bookstore chain, has reported a rise in full-year profits after a "strong performance".
Pre-tax profits for the year to 31 August were £112m, up 9% on the previous year. The company also announced an additional share buyback of "up to £50m". However, group like-for-like sales, which strip out the effect of new store openings, fell 3%. Group chief executive Stephen Clarke said: "The Group has delivered a strong performance with EPS [earnings per share] up 18% year on year." The retailer's travel division - stores located mainly in airports, railway stations, motorway service areas and hospitals - experienced a "record year", with profits up 11% to £73m, Mr Clarke said. As the business was "highly cash generative", WH Smith felt able to extend its share buy back scheme by up to £50m. It completed an earlier £50m return of cash to shareholders on 13 October. WH Smith also increased its full-year total dividend by 14% to 35p. The company aims to cut costs by £21m over the next three years.