WH Smith’s strategic expansion into the travel sector has yielded significant returns, with a substantial portion of its growth over the past year attributed to increased profits from outlets located in airports, train stations, and motorway services.
The company reported a 7% increase in revenue to £1.918 billion for the year ending 31 August, 2024, propelled by the success of its travel shops and its foray into the North American market, as reported by City AM.
The retailer, headquartered in Swindon, has disclosed plans for 90 new travel stores, with two-thirds set to open in the United States. It aims to inaugurate 40 stores within this financial year.
Previously, WH Smith had outlined ambitions to become the quintessential provider of travel necessities.
In the wake of the pandemic, the firm has increasingly leaned on its travel division to capitalise on the surge in demand as Covid-era restrictions have eased.
The company’s pre-tax profit climbed by 16% to £166 million, up from £143 million in 2023, with all incremental profit gains over the previous year stemming from its travel business operations.
Profits from travel trading soared by 13% to £189 million, compared to £164 million the previous year, while profits from high street operations remained steady at £32 million.
WH Smith has proposed a final dividend of 22.6p per share, leading to an annual dividend of 33.6p per share, marking a 16% increase from the prior year.
Chief Executive Carl Cowling commented on the results, stating: “The group has delivered an excellent performance throughout the year, particularly over the key summer trading period.”
“Our most exciting opportunity for growth is in North America. We are very pleased to have recently won some significant new airport business, including wins at Dallas, Denver and Washington Dulles airports, and we are the preferred bidder for a further 15 stores across two major US airports.”
“In addition to the £50m share buyback announced in September, the board is today proposing a final dividend of 22.6p, making a total of 33.6p for the year reflecting current trading and the significant medium and long term prospects for our global travel business.”
“The new financial year has started well. While there is some economic uncertainty, we are confident that 2025 will be another year of good progress for the group.”