A strong performance from the Travel division buoyed total Group revenue by 7% to £1,918m.

WHSmith PLC has announced a robust trading performance from its global Travel operations with profit up 15.2% year-on-year to reach £189 million/$243 million in the 12 months ending 31 August.

Trading profit in the travel retailer’s Travel UK market, the group’s largest division, was up 20% to £122 million/$157 million, as revenue grew 12% to £795m.

Among the highlights was the opening of a one-stop travel essentials shop at Birmingham Airport.

Total group revenue jumped 7% to £1,1918 million with headline group profit before tax and underlying items up 16% to £166m.

In the North America division, trading profit grew marginally to £54m from £49m in the prior year, with revenue up 6% to £401m.

The news, books and convenience retailer opened 40 new shops and has a new store pipeline of 60 stores, including wins at key airports such as Dallas, Denver and Washington Dulles.

WHSmith is the preferred bidder on a further 15 stores at two major US airports, which Group CEO Carl Cowling says “demonstrates why North America is our most exciting opportunity for growth”.

Rest of the World revenue notched £270m as WHSmith cut the ribbon on 52 new stores during the year, including those in Australia, UAE, Spain and Hungary, the last with debut points of sale at Budapest Airport.

North America ‘most exciting growth opportunity’

Three retail stores were acquired in Ireland, while 34 stores were shuttered, of which 16 were franchised.

The company currently has 356 stores open and a further circa 28 won and yet to begin trading.

Of the 356 stores open, 51% are directly run, 8% are operating via joint venture and 41% are franchised.

During the current financial year, the Group expects to open around 25 stores and close three.

A new store pipeline of in excess of 90 shops won and to open in Travel includes around 60 in North America – as mentioned above – with around 40 set to open in this financial year.

Carl Cowling, Group Chief Executive, WHSmith commented: “Our Travel divisions are trading well with a particularly strong performance from our UK Travel business, with trading profit up 20% to £122m. We are making excellent progress in the UK as we continue to benefit from the rollout of our one-stop-shop format which is creating significant opportunities to further grow profitability.

“Our most exciting opportunity for growth is in North America. The Group has delivered an excellent performance throughout the year, particularly over the key summer trading period. This set of results would not be possible without the ongoing efforts and dedication of the entire team across the globe, and I am extremely grateful for their support. The new financial year has started well. While there is some economic uncertainty, we are confident that 2025 will be another year of good progress for the Group.”

The Air business in the region combines the Travel Essentials and InMotion business units. Like-for-like revenue in Air was up 1% and total growth on a constant currency basis lifted 14%.

In Travel Essentials specifically, like-for-like revenue climbed 7% in the year and the Group is eyeing an increase in its market share to around 20% by 2028.

‘By 2028. we would expect to be operating around 500 stores and our overall Air business to be around 85% of the total North American division, which will drive higher growth and profitability,’ read a financial statement.

WHSmith opened a 2,900sq ft flagship store at Budapest Airport in H2. Hungary is a new market for the Group.

Taking into account the 40 store openings in the year, as mentioned above, the Group has 256 stores in Air (124 InMotion shops), 83 stores in Resorts and two shops in Rail.

For InMotion, like-for-like revenue declined 5%. WHSmith insists InMotion has an important role in the Group.

“It resonates strongly with customers; it enables us to offer a market leading tech brand to landlords as part of tenders; to maintain strong global relationships with key brands such as Apple and Bose; to offer a broader selection of branded tech accessories in our Travel Essentials stores and; to broaden our higher margin own brand accessories ranges such as the Good Vibes range which is performing well,” the financial results state.

In Travel UK, the Group is investing in the UK store portfolio with 14 new store openings, including three at airports, six in hospitals and five in rail.

It projects around 10-15 new stores will open in Travel UK in the medium term.

Eight small and less well located stores closed this year, with seven expected to close in this financial year.

The Group serves customers in 32 countries and has opened more than 100 new stores in the year.

The flagship store at Birmingham Airport, which has been trading for 12 months, is one of the Group’s top performing stores within Travel UK with revenue up 40% as a result of the new format.

Cowling adds that the company’s new store opening programme remains on track.

Shareholders will benefit from a 16% increase in full-year dividends versus 2023 to 33.6p per share.

In September, WHSmith announced a £50m share buy-back programme.