WHSmith’s UK revenue grew by 7 per cent in the fourth quarter, as the brand delivered a strong performance in its key peak summer trading period.

In a pre-close trading update, the travel-focused retailer estimated that profit before tax and non-underlying items is expected to be c.£75m.

“This reflects lower trading profit margins driven by increased promotional activity, a reduction in brand marketing and inflation headwinds, offset by central cost reductions and lower interest costs,” WHSmith’s statement read.

Air delivered a solid fourth quarter performance with total revenue increasing by 7 per cent and LFL revenue increasing by 2 per cent, supported by passenger growth and higher spend per passenger.

WHSmith has opened six one-stop-shops in the financial year ahead of the peak trading season, including refurbished stores at Heathrow, Liverpool, Belfast International and East Midlands airports. These sites are designed to widen the customer offering and increase basket size in high footfall locations.

Its Hospital channel delivered good revenue growth in the fourth quarter of 9 per cent, and a LFL revenue uplift of 8 per cent.

Rail delivered a solid fourth quarter performance with total revenue up 5 per cent, and LFL revenue up 4 per cent.

While WHSmith’s travel business continues to prosper, TG Jones, the former WHSmith high street business, is facing fresh fears over its future after a High Court judge delayed a decision on its restructuring plan.

The retailer, which was bought by Modella Capital last year and rebranded from WHSmith, warned it could struggle to meet millions of pounds of payments without approval for the rescue plan.

It was reported in July that up to 150 former WHSmith high street stores are set to close as TG Jones begins a major restructuring of its estate, putting pressure on hundreds of jobs and leaving some town centres facing the loss of a long-standing retail anchor.

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