WH Smith reduces cash burn after beating lockdown trading expectations
WH Smith said this morning reduced its monthly cash burn forecasts, saying its trading performance had beaten its expectations during lockdown.
The firm reported to stronger than forecast revenue across its high street stores and “significant” online growth.
The newsagent chain said revenue in its high street business in January 2021 reached 74 per cent of pre-Covid levels and hit 84 per cent in February, ahead of expectations.
WH Smith’s online greeting cards business Funkypigeon.com toasted record sales over the Valentine’s day period.
As a result of the better-than-expected trading performance, the firm said monthly cash burn between January and March is now forecast to be between £12m and £17m, compared to previous guidance of £15m to £20m.
The retailer’s travel business continued to be a weak spot due to the ongoing restrictions that require people to stay in their local areas.
Total revenue in February was just 33 per cent of 2019 levels due to the impact of low sales across WH Smith’s train station and airport stores which offset the stronger high street performance.
It also announced this morning that it had secured an extension to its financing arrangements with its existing banks.