WH Smith: Profit jumps as expansion into travel shops pays off
WH Smith’s push into travel has paid off with the bulk of its growth in the last year due to higher profit at airports, train stations and motorway services.
WH Smith’s revenue rose seven per cent to £1.918bn in the year ended 31 August, 2024, driven by growth in travel shops plus the company’s expansion into North America.
The listed retailer has a pipeline of 90 travel stores, two thirds of which are in the US. It expects to open 40 stores this financial year.
The company has previously announced its plan to become a one-stop-shop for travel essentials.
It has increasingly sought to rely on its travel arm as demand booms following years of Covid-era lockdowns.
The firm’s pre-tax profit rose 16 per cent to £166m, from £143m in 2023, with all profit growth above last year due to trading at travel locations.
Total travel trading profit was up 13 per cent to £189m, from £164m last year, while high street profit was flat at £32m.
WH Smith proposed a final dividend of 22.6p per share, giving a full year dividend of 33.6p per share, up 16 per cent year on year.
Chief executive Carl Cowling said: “The group has delivered an excellent performance throughout the year, particularly over the key summer trading period.
“Our most exciting opportunity for growth is in North America. We are very pleased to have recently won some significant new airport business, including wins at Dallas, Denver and Washington Dulles airports, and we are the preferred bidder for a further 15 stores across two major US airports.
“In addition to the £50m share buyback announced in September, the board is today proposing a final dividend of 22.6p, making a total of 33.6p for the year reflecting current trading and the significant medium and long term prospects for our global travel business.
“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.”