WH Smith's profits driven up 16% by success of stores in airports and stations

Profits from its shops located in railway stations, airports and hospitals worldwide saw a 15% surge to £189m, with UK-based stores experiencing a fifth of this growth

WH Smith has reported a 16% increase in annual profits, driven by the success of its travel division.

The company revealed underlying pre-tax profits of £166m for the year ending August 31, a significant rise from last year's £143m. Profits from its shops located in railway stations, airports and hospitals worldwide saw a 15% surge to £189m, with UK-based stores experiencing a fifth of this growth.

Despite a 2% drop in like-for-like sales, earnings remained steady at £32m in its traditional high street business due to cost-saving measures. WH Smith is focusing on expanding its travel shops across North America, with approximately 60 new stores in the pipeline and bids to acquire another 15 in major US airports.

The firm also continues to grow its UK travel chain, having opened 14 sites over the past financial year, with plans to open three to eight more in the coming year. However, it has reduced its UK high street division, closing 14 sites and leaving 500 remaining.

The company stated that it has around 470 store leases up for renewal over the next three years, including 100 where active negotiations with landlords are underway.

"We only renew a lease where we are confident of delivering economic value over thelife of that lease," the firm said. WH Smith added: "As we grow travel, the high street division will become a smaller part of the overall group."

WH Smith has revealed that its high street business now represents about 15% of the group's annual trading profit. To revitalise their high street presence, they're rolling out nationwide concessions of Toys R Us – with 30 already open and another 37 set to launch by Christmas.

Further boosting their retail appeal, they're reintroducing vinyl records after a hiatus of over three decades in 80 high street stores. The Group's CEO Carl Cowling commented: "The group has delivered an excellent performance throughout the year, particularly over the key summer trading period."

He remained upbeat despite economic concerns, stating: "While there is some economic uncertainty, we are confident that 2025 will be another year of good progress for the group."