UK Retailer Feels Impact of US Deal, Sees Growth in Travel Sales
- WHSmith’s profit before tax dropped by 21% to £65m due to the acquisition of American airport store In Motion
- Excluding In Motion, travel revenue rose 7% to £44m
- Group profit before tax fell 1% to £81m with a 8% increase in group revenue to £695m
- High street total revenue down 1% with like-for-like revenue down 2%
- Strong sales growth of 18% in travel due to investment and initiatives in UK and international businesses
- Increase in interim dividend by 8% reflecting board’s confidence for the full year outcome
WHSmith’s profit before tax dropped by 21% to £65 million following the acquisition of American airport store In Motion for £155 million last year. Excluding In Motion, its travel revenue saw a 7% rise to £44 million and the company expects continued strong profit growth in the second half – slightly ahead of expectations. The headline group profit before tax fell by 1% to £81 million despite a 8% increase in group revenue to £695 million. Its high street total revenue was down 1% with like-for-like revenue down 2%, which WHSmith described as its ‘second best sales performance in the past decade’. Stephen Clarke, group chief executive, said: ‘The group has delivered a strong performance in the first half of the financial year. In travel, we continue to see strong sales growth, up 18%, driven by our ongoing investment and initiatives in our UK business and our growing international businesses. As a result, profit in travel was up 7% in the period.’ He added: ‘High street delivered one of our best trading performances in recent years, despite the widely reported challenges facing the UK high street, with LFL sales down 2%. This has been driven by good growth in seasonal stationery ranges including Christmas cards, wrap, diaries, calendars and our latest fashion and art and craft ranges. ‘These results are only possible through the hard work of all of our teams across the business and I am sincerely grateful for everyone’s continued support. While there is uncertainty in the broader economic and political environment, we have made a good start to the second half of the financial year and the increase in the interim dividend by 8% reflects the board’s confidence in the outcome for the full year.’
Factuality Level: 9
Factuality Justification: The article provides accurate information about WHSmith’s financial performance, including specific numbers and percentages, and quotes from the group chief executive Stephen Clarke. It also includes context on the company’s growth and expansion plans. The information is presented in a clear and concise manner without any apparent bias or misleading statements.
Noise Level: 3
Noise Justification: The article provides relevant information about WHSmith’s financial performance and highlights its growth in travel revenue and international expansion. It also mentions challenges faced by the UK high street but does not contain any irrelevant or misleading information. The CEO’s comments add value to the report without being repetitive. The article stays on topic and supports its claims with specific numbers and percentages.
Financial Relevance: Yes
Financial Markets Impacted: WHSmith’s profit before tax dropped by 21%, impacting its stock price and investor sentiment.
Financial Rating Justification: The article discusses WHSmith’s financial performance, including a drop in profit before tax and an increase in revenue. This information is relevant to investors and can affect the company’s stock price and market sentiment.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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