The group’s ‘one-stop-shop’ strategy has delivered positive results in the UK. Pic credit: WHSmith

Travel business has delivered “strong growth” for WHSmith this year, the company has revealed in a pre-close trading update. Preliminary results for the year ending 31 August are due on 14 November.

Group CEO Carl Cowling commented: “We have ended the financial year in a strong position, delivering a performance in line with our expectations with good growth across our Travel businesses. Our UK division performed particularly well over the peak summer trading period.”

Group revenue was up +7% for the year versus 2023, driven by travel, which was up +10%. Travel performed well over its peak trading period in the second half, WHSmith confirmed, driven by key initiatives and strong passenger growth.

These initiatives included the broadening of the group’s categories – and enhanced ranges – most notably in food and drinks, health and beauty, and technology.

UK travel underpins positive results

“In the UK, our strategy to create a one-stop-shop for travel essentials is delivering strong results and our focus on category development continues,” the company noted in a statement. “Ahead of the peak trading season, we launched a new food-to-go offer branded Smith’s Family Kitchen which is performing ahead of expectations.

“Our businesses in North America and the Rest of the World continued to show good momentum. In North America, our initiatives are starting to deliver an improvement in trading, and this positions us well for future growth. Our Rest of the World division is performing well as passenger numbers continue to improve across these markets.”

WHSmith’s businesses in North America and the Rest of the World continue to show good momentum. Pic credit: WHSmith.

In other news, WHSmith has completed the Buy Out of its defined benefit scheme – a move that has returned £85 million (US$112 million) to the company.

Finally, WHSmith has announced a £50 million (US$66 million) Share Buyback, and its intention, subject to other requirements for capital, to return surplus cash to investors, in line with its capital allocation policy.

Cowling explained: “We are announcing the launch of a £50m share buyback, which reflects strong ongoing cash flow, the receipt of the pension fund buyout cash return, as well as the strength of our balance sheet, with leverage now within our target range. Our colleagues have worked extremely hard to deliver these results over what has been a very busy summer, and I would like to thank them for their contribution to the Group’s success.”

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