// WHSmith headline profit jumped from £14m to £45m
// A “significant recovery” in passenger numbers helped drive an almost five-fold jump in profits at its travel business
WHSmith had a stellar first half with profits coming in ahead of expectations as a “significant recovery” in passenger numbers bolstered its travel business.
Pre-tax profit before non-underlying items more than trebled from £14m to £45m while sales rocketed 41% to £859m in the half to 28 February.
Its travel division represented more than 70% of group sales and around 85% of headline group profit.
In terms of trading profit, its travel division made £47m – from £10m last year – compared to £24m at its high street.
WHSmith chief executive Carl Cowling said: “We have seen a strong performance in the first half of the year further strengthening our confidence in the prospects of our global travel business.
“We expect travel to represent over 70% of group revenue and around 85% of group profit from trading operations by the end of this financial year.”
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The retailer has won more than 120 new travel stores this year, including 60 in North America.
Its UK travel division notched up a 19% sales growth against 2019 levels, despite passenger numbers being considerably lower.
This has been driven by category expansion, boosting its average transaction value, the success of electricals brand InMotion and its travel essentials format.
Cowling said: “Looking ahead, we are very well positioned to capitalise on the substantial growth drivers across our markets and we expect to make further good progress in the years ahead. Current trading is strong and we are ahead of expectations for the full year.”
Over the period, WHSmith opened its first Curi.o.city stores, which sells high-end souvenir and stationery shops as it looks to fill the space left by Paperchase, which collapsed earlier this year.
The retailer opened Curi.o.city in Gatwick Airport’s north and south terminals on March 16, as well as one at St Pancras International in London at the beginning of April.
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