Retailer Sees Strong Momentum Across Travel, Air, Hospital, and Rail Segments
- WHSmith’s profit before tax increased by 16% to £166m in FY24
- Total group revenue up 7% at £1.9bn
- Strong performance across travel, air, hospital, and rail segments
- Travel arm revenue increased 11% to £1.4bn
- High street profits fell 9% to £39m
- Opening 10-15 new stores, closing 7 existing ones
- Toys ‘R’ Us shops success leads to opening 37 more ahead of Christmas
WHSmith has reported a 16% increase in profit before tax to £166m for the year ended 31 August. The company’s total group revenue rose by 7% to £1.9bn, with strong performances across its travel, air, hospital, and rail segments. The retailer experienced ‘strong momentum’ during the peak summer trading period, which has continued into the new financial year. In the travel arm, revenue increased 11% to £1.4bn, with the UK segment amounting to £795m. WHSmith opened 14 new stores in the UK, including 3 at airports and 6 in hospitals. The company expects to open 10-15 more stores while closing 7. In the air segment, total revenue increased by 11%, with LFL revenue also up 11% compared to the prior year. WHSmith’s hospital channel, its second-largest travel market in the UK by revenue, saw a 14% increase in total revenue and a 12% rise in LFL revenue during the year. The rail segment experienced a 13% growth in total revenue and an 11% increase in LFL revenue. However, high street profits fell 9% to £39m, which the group said was ‘in line’ with expectations. By the end of the year, WHSmith operated from 500 stores, with 14 closures. The company opened 30 Toys ‘R’ Us shops in the second half of the year and is now in the process of opening 37 more ahead of Christmas. CEO Carl Cowling said, ‘The new financial year has started well, despite economic uncertainty, we are confident that 2025 will be another year of good progress for the group.’
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about WHSmith’s financial performance, including specific revenue and profit figures, store openings and closures, and CEO comments on future growth opportunities.
Noise Level: 3
Noise Justification: The article provides relevant information about WHSmith’s financial performance and growth in various segments, with specific numbers and details on store openings and closures. It also includes a quote from the CEO expressing confidence for future progress. However, it lacks analysis of long-term trends or possibilities, exploration of consequences, intellectual honesty, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses WHSmith’s financial performance, including a 16% increase in profit before tax and growth in various segments such as travel, air, hospital, and rail. However, it does not directly mention any specific financial markets or companies being impacted.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article
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