WH Smith PLC (LSE:SMWH) swung to a profit for the year end 31 August 2022 as it reinstated its dividend and said it is now in “its strongest ever position as a global travel retailer”.
Headline profit before tax and non-underlying items was £73mln for the financial year, compared to a loss of £55mln for 2021, it said.
Shareholders will receive a final dividend of 9.1p per share, “reflecting confidence in future and strong current trading”.
The FTSE 250 company said revenue saw a “significant recovery” in the year to August, up to £1.4bn from £886mln.
According to a statement, WH Smith's travel arm, which has shops in locations such as airports and train stations, reported a trading profit of £89mln (loss of £39mln), while its high street division reported a rise in trading profit to £33mln from £19mln.
Looking forward, chief executive Carl Cowling said “we have started the year well and, while there is economic uncertainty, travel patterns globally continue to improve and this, combined with the strength of the group's growth opportunities, means that we are well positioned for a year of significant progress in 2023”.
Travel continues to show momentum in the new year, with income in the 10-week period to 5 November 148% higher than in pre-pandemic 2019.
Growth is expected to continue, with the group winning 150 new travel stores which are yet to open, including 70 in North America and with 125 sites due to open this financial year.