WH Smith (SMWH) Trading Update summary

Trading performance

• Achieved strong Q4 results, with group revenue up 7% year-on-year, driven by 10% growth in the Travel segment.

• UK Travel division saw robust performance, especially during the peak summer period, supported by new category launches and a successful food-to-go offer.

• North America and Rest of the World Travel divisions maintained positive momentum, benefiting from improved passenger numbers and ongoing initiatives.

• High Street business performed in line with expectations, with 30 Toys "R" Us shop-in-shops opened and plans for 37 more by Christmas 2024.

Capital allocation and returns

• Completed pension scheme buyout, resulting in an £85m return to the company, including a £75m cash refund and a £10m investment fund.

• Announced a £50m share buyback, reflecting strong cash flow and balance sheet strength, with leverage now within the target range.

• Intends to return further surplus cash to investors, maintaining a targeted leverage range of 0.75x–1.25x.

Strategic initiatives and outlook

• Continued focus on broadening product categories in Travel, notably in food, drinks, health, beauty, and technology.

• Launched Smith's Family Kitchen and opened the first Smith's Kitchen café, both exceeding expectations.

• Preliminary results for the year ending 31 August 2024 will be announced on 14 November 2024.