REG - WH Smith PLC - Interim Results Announcement
16/04/2025 07:00
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RNS Number : 1858F WH Smith PLC 16 April 2025
16 April
2025
WH SMITH PLC
The global travel retailer
INTERIM RESULTS ANNOUNCEMENT
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2025
Strong first half performance in Travel
Well-positioned for future growth as a pure play travel retailer
· Total revenue in Travel up 6%, with Travel UK up 7% year on year;
North America up 5%*; Rest of the World ('ROW') up 15%*
· Total Group revenue up 3% to £951m (2024: £926m)
· Total Travel trading profit(†1) of £56m (2024: £50m) up 12%
· High Street trading profit(†1) of £15m (2024: £22m)
· Headline Group profit before tax and non-underlying items(†1) of
£45m (2024: £46m)
· New store pipeline of over 90 stores(2) won and yet to open in
Travel, including over 70 in North America. Expect to open over 60 stores this
financial year
· Major contract won at US East Coast airport, cementing our presence
as a leading operator in Travel Essentials on the East Coast
· Agreed sale of UK High Street business on 28 March 2025
· Interim dividend of 11.3p per share, reflecting strong trading and
cash generation combined with the Board's confidence in the future growth
prospects of the Group
· Previously announced £50m share buy back progressing with £27m
purchased as at 15 April 2025
· Strong balance sheet with refinancing completed and leverage(1) now
at 1.7x with further strengthening expected
· Trading in line with market expectations
Carl Cowling, Group Chief Executive, commented:
"The Group has had a good first half with consistent like-for-like growth
across all our Travel businesses, and we are well-positioned for the peak
summer trading period.
"Travel trading profit was up 12% at £56m, and the Board is today announcing
an interim dividend of 11.3p, reflecting their confidence in the future growth
prospects of the Group.
"Our UK Travel business has had a strong half with trading profit 8% ahead of
last year. In North America, we are beginning to see the benefits of our work
to re-engineer our space and improve our retail offer, with like-for-like
revenue growth of 3% in the period. We continue to win new space, and I am
delighted to announce that we have recently secured a significant contract at
a major East Coast airport.
"It has been an exceptionally busy period, and I would like to thank our
colleagues for their ongoing commitment.
"The second half of the financial year has started well, and we remain on
track to deliver full year results in line with market expectations. We are
mindful of the increased level of geopolitical and economic uncertainty,
however given the resilient nature of our business, we are well-positioned to
benefit from the growth opportunities in global travel retail."
* On a constant currency basis
(†) Pre-IFRS 16
(1) Alternative Performance Measure (APM) defined and explained in the
Glossary on page 43
(2) Pipeline as at 28 February 2025
Group financial summary
Headline
IFRS pre-IFRS 16(3)
6 months to 6 months to 6 months to 6 months to Feb 2024
Feb 2025 Feb 2024 Feb 2025
Travel UK trading profit(1) £40m £39m £40m £37m
North America trading profit(1) £18m £14m £15m £14m
Rest of the World ('ROW') trading profit/(loss)(1) £5m £1m £1m £(1)m
Total Travel trading profit(1) £63m £54m £56m £50m
High Street trading profit(1) £20m £27m £15m £22m
Group profit from trading operations(1) £83m £81m £71m £72m
Group profit before tax and non-underlying items(1) £44m £44m £45m £46m
Diluted earnings per share before non-underlying items(1) 23.1p 22.9p 23.8p 24.4p
Non-underlying items(1) £(86)m £(16)m £(70)m £(14)m
Group (loss) / profit before tax £(42)m £28m £(25)m £32m
Basic (loss) / earnings per share (33.6)p 13.2p (24.2)p 15.5p
Diluted (loss) / earnings per share (33.6)p 13.0p (24.2)p 15.2p
Revenue performance
6 months to Feb 2025 6 months to Feb 2024 % change % change (constant currency)
£m £m
Travel UK 384 360 7% 7%
North America 194 189 3% 5%
Rest of the World 134 121 11% 15%
Total Travel 712 670 6% 8%
High Street 239 256 (7)% (7)%
Group 951 926 3% 4%
(3) The Group adopted IFRS 16 'Leases' with effect from 1 September 2019. The
Group continues to monitor performance and allocate resources based on
pre-IFRS 16 information (applying the principles of IAS 17), and therefore the
results for the periods ended 28 February 2025, 31 August 2024 and 29 February
2024 have been presented on both an IFRS 16 and a pre-IFRS 16 basis.
Measures described as 'Headline' are presented pre-IFRS 16.
For the purposes of narrative commentary on the Group's performance and
financial position, both pre-IFRS 16 and IFRS 16 measures are provided.
Reconciliations from pre-IFRS 16 measures to IFRS 16 measures are provided in
the Glossary on page 43.
ENQUIRIES:
WH Smith PLC
Nicola Hillman Media Relations 01793 563354
Mark Boyle Investor Relations 07879 897687
Brunswick
Tim Danaher 020 7404 5959
WH Smith PLC's Interim Results 2025 are available at whsmithplc.co.uk
(http://www.whsmithplc.co.uk) .
GROUP OVERVIEW
Our Travel business has had a strong first half with Total Travel generating
Headline trading profit(1) up 12% to £56m (2024: £50m), Headline Group
profit before tax and non-underlying items(1) of £45m (2024: £46m) and
Headline diluted EPS before non-underlying items(1) down 2% to 23.8p (2024:
24.4p) reflecting the reduction in profits from the High Street business.
We saw strong momentum across our Travel markets, and we continue to focus on
increasing our spend per passenger across each of our divisions.
Following the announcement on 28 March 2025 that we have agreed the sale of
our UK High Street business to Modella Capital, we see further significant
growth opportunities as a pure play global travel retailer.
We have a highly successful Travel business, operating in fast growing markets
in 32 countries and we are constantly innovating to deliver strong returns and
meet our customers' and partners' needs. Our Travel business currently
accounts for around 75% of the Group's revenue and 85% of its trading profit.
With the ongoing strength in our UK Travel division, and the scale of the
growth opportunities in both North America and the Rest of the World, we are
in a strong position to deliver enhanced growth as we move forward as a pure
play travel retailer.
Passenger numbers are forecast to double over the next two decades, driven by
population and economic growth. We are also seeing significant investment in
airport infrastructure creating an improved retail offer for travellers. In
addition, as landlords look to consolidate formats in travel retail, we are in
a strong position to execute and further rollout our one-stop-shop format.
These factors, combined with the four pillars of our growth strategy:
increasing spend per passenger, optimal use of space, space growth, and growth
in passenger numbers, give us confidence as we look ahead.
During the period, we have seen a notable increase in tender activity in North
America and we are delighted to announce new wins at Albuquerque, Dallas, and
Portland airports, as well as a significant win at a major East Coast airport,
adding a further 26 stores to our growing North America portfolio. This brings
the total number of stores won and yet to open in North America to over 70,
primarily opening over the next 2 years. We expect to open c.25 in this
financial year and anticipate c.13 closures, in line with our strategy to
improve the quality of our space.
Across our Travel divisions, we have a new store pipeline of over 90 stores
won and yet to open. Including the 30 openings in the first half, we expect to
open over 60 stores this financial year. As part of our strategy to improve
the quality of our space, we expect to close c.50 stores this financial year,
including removing loss-makers, small franchise stores and landlord
redevelopment. After closures, we expect to have net openings of c.10 stores
this year.
Our forensic approach to retailing combined with the scalability of our
business provides us with significant opportunities to win and open new
stores, and with that to continue to grow revenue, profit, cash generation
and, through operational gearing, grow our EBIT margins.
The transformation of our UK Travel business from a news, books and
convenience retailer to a one-stop-shop for travel essentials is progressing
well and it is delivering strong results, driving profitability and
highlighting significant opportunities for the future. We are able to
consolidate existing categories and introduce new ones such as food-to-go,
tech accessories, and health and beauty. This transformation is most evident
in our largest stores at London Heathrow, London Gatwick and Birmingham
airports. We have also, more recently, opened stores under this one-stop-shop
format at Edinburgh and Newcastle airports. It is a highly scalable format and
applicable across all of our stores in Air, so we see plenty of good
opportunities for the future. While the rollout has started in the UK, there
is great potential for this retail format in our North America and ROW
divisions.
North America, the world's largest travel market with significant market share
opportunities, is our most exciting growth market where we see excellent
prospects to further expand our airport business. This division will become an
increasingly significant part of the Group and is now our second largest
division in profit terms, after Travel UK.
Across each of our Travel divisions, we have made good progress in the first
half, supported by the key pillars of our strategy and our ongoing forensic
approach to retailing across each of our divisions.
These include:
· Space growth:
o Opening new stores;
o Winning new business;
o New, better quality space;
o Extending contracts;
o Developing formats and brands
· ATV growth:
o Space management;
o Refitting stores;
o Range development
· Category development:
o One-stop-shop travel essentials format;
o Improving ranges, for example, health and beauty, food to go, and tech
· Cost and cash management:
o Flexible rent model;
o Investing for growth (capex in the current financial year expected to be
around £110m);
o Productivity and efficiencies
· Disciplined capital allocation, supporting investment in growth and
shareholder returns
OUTLOOK
The second half of the financial year has started well, and we remain on track
to deliver full year results in line with market expectations.
We are mindful of the increased level of geopolitical and economic
uncertainty, however given the resilient nature of our business, we are
well-positioned to benefit from the growth opportunities in global travel
retail.
At the announcement of the sale of our High Street business on 28 March 2025,
we indicated that the business was trading in line with market expectations.
Based on current trading for the Group, our expectations remain unchanged.
Group revenue
6 months to Feb 2025
Total revenue Total revenue at constant currency LFL revenue(1)
vs 2024 vs 2024(4) vs 2024
Travel UK 7% 7% 7%
North America 3% 5% 3%
Rest of the World 11% 15% 9%
Total Travel 6% 8% 6%
High Street(5) (7)% (7)% (3)%
Group 3% 4% 3%
Total Group revenue at £951m (2024: £926m) was up 3% for the first six
months compared to the prior year.
In Travel, we saw a strong performance across all our markets. Total Travel
revenue for the first half was up 6% and up 6% on a like-for-like(1) ('LFL')
basis. This was driven by strong performances in all three Travel divisions
with Total revenue in the UK up 7%, North America up 5%(4), and ROW up 15%(4).
Our High Street business performed in line with market expectations for the
first half.
(4) Constant currency
(5) Includes internet businesses
Group profit
Total Travel delivered a Headline trading profit(1) in the half of £56m
(2024: £50m). In Travel UK, Headline trading profit(1) increased by £3m to
£40m; in North America, Headline trading profit(1) increased by £1m to
£15m. ROW delivered a Headline trading profit(1) of £1m, up from a loss of
£1m on the prior year.
High Street delivered a Headline trading profit(1) of £15m (2024: £22m),
reflecting the ongoing decline in footfall on UK high streets.
Headline Group profit from trading operations(1) for the period was £71m
(2024: £72m) with Headline Group profit before tax and non-underlying
items(1) at £45m (2024: £46m).
The Group loss before tax, on an IFRS 16 basis and after non-underlying items,
was £42m (2024: profit of £28m) in the half.
Group balance sheet
The Group has a strong balance sheet, is highly cash generative and has
substantial liquidity. The Group has the following cash and committed
facilities as at 28 February 2025:
28 February 2025 Maturity
Cash and cash equivalents(6) £39m
Revolving Credit Facility(7) £400m June 2029
Convertible bonds £327m May 2026
The Group has a 5 year sustainability-linked revolving credit facility ('RCF')
and a £327m convertible bond with a maturity of 7 May 2026 which has a fixed
coupon of 1.625%.
As at 28 February 2025, Headline net debt(1) was £454m (31 August 2024:
£371m) and the Group has access to c. £244m of liquidity (£22m cash on
deposit and £222m undrawn RCF). Leverage(1) at 28 February 2025 was 1.7x
Headline EBITDA(1) (29 February 2024: 1.8x).
Refinancing
On 25 March 2025, the Group announced the successful completion of a
£200m issue of US Private Placement (USPP) notes and a bank term loan
of £120m.
The USPP notes, which represent the Group's debut issue in the USPP market,
have a maturity of 7, 10 and 12 years and have been issued on investment grade
terms. At the same time, the Group has agreed a £120m three-year bank term
loan with two uncommitted extension options of one year each, which would,
subject to lender approval, extend the tenor of the new bank loan to 4 and 5
years, if exercised.
The Group's existing £400m revolving credit facility ('RCF') is retained
and matures in June 2029. The RCF has one remaining uncommitted extension
option of one year, which would, subject to lender approval, extend the
maturity date to June 2030, if exercised.
This refinancing will diversify the Group's sources of debt financing and
extends the Group's debt maturity profile in advance of the convertible bond
maturing on 7 May 2026. The income statement cost of the convertible bond is
c.4.6% including the non-cash debt accretion charge. The income statement cost
of the replacement financing will be c.6.3%.
Group cash flow
The Group generated an operating cash flow(1) of £94m (2024: £94m) in the
half, demonstrating the cash generative nature of the business. Capex was
£50m(8) (2024: £65m) as we continue to invest in new stores, with targeted
returns ahead of our cost of capital. As expected, we had a working capital
outflow of £87m(9) in the first half (2024: £68m). Of this outflow, most
results from the usual working capital cadence in the Group where there has
been a large working capital outflow in the first half due to the seasonality
in the Travel business. As the Travel businesses grows, we will see greater
seasonality in our cash flows.
(6) Cash and cash equivalents comprises cash on deposit of £22m and cash in
transit of £17m
(7) Draw down of £178m as at 28 February 2025
(8) Excluding capex related to non-underlying items of £1m
The balance mainly relates to the investment in new stores. In total, there
was a free cash outflow in the half of £69m (2024: £56m). This year, we
would expect, subject to investment opportunities, an increase in free cash
generation, and net debt to be around £400m at the end of the year.
Capital allocation policy
The cash generative nature of the Group is complemented by our disciplined
approach to capital allocation. This has been in place for many years and
continues to drive our decision making for utilising our cash:
· First, investing for growth in our existing business and in new
opportunities where rates of return are ahead of the cost of capital. This
financial year, we expect capex of c.£110m. The returns in Travel are good
with ROCE(10) in the UK at 35%, North America at 15% and ROW at 26%.
· Second, paying a dividend, we have a progressive dividend policy with
a target dividend cover, over time, of 2.5x; the Board is declaring an interim
dividend of 11.3p per share
· Third, undertaking attractive value-creating acquisitions in strong
and growing markets;
· And, lastly, returning surplus cash to shareholders via share buy
backs.
The Board has declared an interim dividend of 11.3p per share (2024: 11.0p per
share). This reflects our strong start to the year, the cash generative nature
of the business and our confidence in the future growth prospects of the
Group. Over time, we aim to have a cover ratio of around 2.5 times
earnings(11). The dividend payments are paid on an interim and final basis
with a 1/3:2/3 split. The interim dividend will be paid on 31 July 2025 to
shareholders registered at the close of business on 11 July 2025.
On 11 September 2024, the Group announced a £50m share buyback which reflects
the strong ongoing cash flow, the receipt of the pension surplus cash return
as well as the strength of our balance sheet. As at 15 April 2025, the Group
had purchased 2.2m shares for cancellation for total consideration of £27m.
TOTAL TRAVEL
Total Travel revenue for the period was £712m (2024: £670m), up 6% compared
to the previous year, generating a Total Travel Headline trading profit(1) of
£56m (2024: £50m).
Trading profit(1) Headline trading profit/(loss)(1)
(IFRS) (pre-IFRS 16) Revenue
£m 6 months to Feb 2025 6 months to Feb 2024 6 months to Feb 2025 6 months to Feb 2024 6 months to Feb 2025 6 months to Feb 2024
Travel UK 40 39 40 37 384 360
North America 18 14 15 14 194 189
Rest of the World 5 1 1 (1) 134 121
Total Travel 63 54 56 50 712 670
In Travel, our initiatives position us well for continued growth:
· Space growth - Business development and winning new business
Through building and managing relationships with all our landlord partners, we
look to win new space, improve the quality and amount of space, develop new
formats and extend contracts. We opened 30 stores during the half (13 net of
closures). We now have a store pipeline of over 90 stores(2) (c.70 stores net
of expected closures), which are due to open over the next three years. There
are significant space growth opportunities across all our Travel markets and
going forward, we expect to win, on average, 50 to 60 stores each year and
close on average c.20 stores as we improve the quality of our space.
( )
(9) Pre-IFRS 16
(10) Return on capital employed. ROCE is an Alternative Performance Measure
(APM) defined and explained in the Glossary on page 43.
(11) Headline diluted earnings per share, before non-underlying items
· ATV growth and spend per passenger
We aim to grow ATV through our forensic analysis of the return on our space,
cross-category promotions, merchandising, store layouts and store refits. The
transition of our stores to a one-stop-shop for travel essentials is an
important driver of this growth. During the period, we have continued to focus
on re-engineering our ranges and we continue to see good ATV growth across all
our channels.
· Category development
We do this by developing adjacent product categories relevant for our
customers, such as health and beauty and tech ranges, and expanding existing
categories such as food. During the half, we have continued to focus on
identifying further opportunities for our one-stop-shop travel essentials
format. More recently, we have opened 2 new one-stop-shops at Edinburgh and
Newcastle airports. The results from our one-stop-shop travel essentials
format have been positive for both our customers and our landlords.
· Cost and cash management
We remain focused on cost efficiency and productivity, for example, by
continuing to invest in energy efficient chillers across our stores and
investing in our supply chain capabilities in North America to more
effectively serve our growing store estate on the East Coast of the US.
TRAVEL UK
Travel UK, our largest division, has delivered a strong first half performance
and we continue to see good opportunities to grow this division further.
Total revenue in the period was £384m (2024: £360m) which, together with
improved margins, resulted in a Headline trading profit(1) of £40m (2024:
£37m).
Across all our channels, we continue to focus on our key growth drivers: space
growth, increasing ATV and spend per passenger, driving EBIT margins and
benefitting from the growth in passenger numbers. Momentum is strong and we
are seeing good results, with revenue growing ahead of passenger numbers.
All our channels in Travel UK have performed strongly in the period with total
revenue growth of 7% versus last year.
We are investing in our UK store portfolio while also identifying new and
better quality space opportunities across each of our channels. During the
half, we have opened 3 new stores - 1 in Air and 2 in Hospitals. We are on
track to open a further 9 stores in the second half of the financial year. We
see this annual space growth of around 10 to 15 new stores in Travel UK
extending into the medium term. We closed 15 stores in the half in line with
our strategy to improve the quality of our space.
Revenue growth by key channels
Revenue (% change)
6 months to Feb 2025
Total revenue LFL revenue(1)
vs 2024 vs 2024
Air 8% 9%
Hospitals 9% 4%
Rail 5% 4%
Total Travel UK 7% 7%
Air
We delivered a strong performance in the period across our UK Air channel with
LFL revenue growth of 9%. Our one-stop-shop format is delivering strong
results, driving profitability, and highlighting further significant
opportunities for the future.
We continue to expand this format and we have recently refitted stores at
Manchester and London Stansted airports by significantly increasing the space
dedicated to health and beauty ranges. In addition, our stores at Edinburgh
and Newcastle airports have seen a complete refit to our one-stop-shop format
and we are seeing good results.
Across Edinburgh and Newcastle airports, we have designed stores encompassing
everything you would expect from WHSmith, as well as a broader and improved
product range, including health and beauty, tech and food to go.
Our food range, Smith's Family Kitchen, has resonated well with customers
across all channels. During the period, we have further developed our ranges
and improved our offer for customers, which now includes pastries and bakery
items.
By widening our offer and creating a fast, convenient shopping experience,
customers are purchasing more items which increases our spend per passenger
and drives ATV.
This is a highly scalable format and applicable across all of our stores in
Air. We therefore see plenty of good opportunities for the future.
Hospitals
The hospital channel is the second largest by revenue behind Air and it has
delivered a good performance in the period with LFL revenue up 4%.
Our ongoing success in the Hospital channel illustrates our ability to
generate increased profitability from our stores by improving our retail
proposition. We do this by tailoring our product offer to the specific
requirements of hospital staff, patients and visitors by providing an
increased range of food, health and beauty and tech accessories.
During the first half, we have opened 2 hospital stores. We have also opened
our second Smith's Family Kitchen café at Greater Manchester Hospital. While
it is still very early days for this format, customer reaction has been
positive and we are in discussion with hospital trusts on how we can work
together to improve their food and beverage offer.
We expect to open a further 8 stores in the second half and we see plenty more
opportunities to continue to grow our space and improve the retail proposition
under our broad suite of brands and new formats. We currently have 147 stores
across more than 100 hospitals and we see scope for at least one of our
formats in up to 200 additional hospitals.
Rail
We have delivered a good performance in Rail with LFL revenue up 4%.
In line with our other channels, we continue to focus on investing in new
formats and improving our ranges across many of our stores, including the
refurbishment of some of our mainline rail stores such as Kings Cross and
Charing Cross stations in London, to provide an improved customer proposition.
During the period, we have also refitted stores at Glasgow Queen Street
station and York.
By increasing the space to more food-to-go and health and beauty products
across these stores, we have increased our spend per passenger.
NORTH AMERICA
North America, the world's largest travel market, is our most exciting growth
opportunity where we see excellent prospects for further growth in our airport
business. This division will continue to become an increasingly significant
part of the Group and is now our second largest division in profit terms,
after Travel UK.
We are mindful of the increased level of geopolitical and economic
uncertainty, however given the resilient nature of our business, our low
average transaction value, and our strong spend per passenger growth, we are
in a strong position to mitigate any potential weakening in passenger numbers.
LFL revenue growth, despite a softening in passenger numbers, remains
positive.
During the half, we delivered a good performance with 10 new store openings.
We have increased revenue by 5%(4) on a constant currency basis, improved
gross margins and we continue to invest in our store estate. Total revenue was
£194m (2024: £189m), an increase of 3%. Headline trading profit(1) was up 7%
to £15m (2024: £14m).
Our North American business is subject to changes in the GBP:USD exchange
rates. A 5 cent change in this rate results in a c.£3m movement in annual
Headline trading profit.
Our Air business, the largest part of our North American division, combines
our Travel Essentials and InMotion businesses. LFL revenue in Air was up 4%
and total growth on a constant currency basis was up 9%.
Travel Essentials is the largest, fastest growing part of our North American
business and where we are investing the majority of our capital. In Travel
Essentials, we delivered a strong performance with LFL revenue up 8% in the
period. We see further good opportunities to win and open more Travel
Essentials stores in Air, delivering good returns, as we aim to grow our
market share to around 20% by 2028. By 2028, we would expect to be operating
around 500 stores and our overall Air business to be around 85% of the total
North American division, which will drive higher growth and profitability.
A key driver of our growth to date has been our ability to win significant new
tenders.
We opened a further 10 stores (net of closures, 3) in the period including new
stores at Boston, Salt Lake City and Washington Ronald Reagan airports. Early
results are good, and customer and landlord feedback has been positive. During
the half, we closed 7 stores, primarily InMotion stores.
We still have a very strong pipeline of new store openings and our success to
date in winning tenders demonstrates why we remain confident in our ability to
continue to win market share. We now have a new store pipeline of over.70
stores due to open primarily over the next 2 years and currently we anticipate
closing c.20 stores, in line with our strategy to improve the quality of our
space.
In the period, we have won 26 new airport stores at Albuquerque, Dallas, and
Portland, as well as a significant win at a major East Coast airport,
cementing our position as a leading operator in Travel Essentials on the East
Coast.
As we build scale, we are also investing in our supply chain capabilities, for
example, on the East Coast to more effectively serve our growing store estate
and this is generating good efficiencies.
Including the 10 store openings in the period, we now have 258 stores in Air
(including 120 InMotion stores), 84 stores in Resorts and 2 stores in Rail.
Revenue growth by key channels
Revenue (% change)
6 months to Feb 2025
Total Total at constant currency(4) vs 2024 LFL(1)
vs 2024 vs 2024
Air 6% 9% 4%
Resorts (9)% (6)% (3)%
Total North America 3% 5% 3%
Air is the largest and fastest growing part of our North American division and
combines our Travel Essentials and InMotion businesses.
Our approach to growing our Air business in North America is similar to the
UK, but it is at a much earlier stage of development. Around 80% of passenger
traffic in the US is domestic. During the first half, we have continued to
focus on improving the quality and efficiency of our estate and driving
profitability by applying the retail disciplines from our UK stores. Using the
data from around 200 stores, we are forensically analysing our space to
enhance our ranges, introduce new categories and review space allocation.
We are focused on increasing spend per passenger. In the first half, we have
seen strong spend per passenger growth of around 5%. By focusing on the key
areas of growth we can control, we are in a strong position to mitigate
potential weakening in passenger numbers. In addition, our low average
transaction value means we are less impacted than luxury retailers.
The changes we are making to improve our customer proposition are
predominantly in our food and drink categories. We are increasing the space
allocated to food-to-go and snacking and investing in more chillers across key
stores. At the same time, we are developing our health and beauty category, as
we have done in the UK, and this will become a more important part of our
business.
Using these principles, we are delivering superior returns in spend per
passenger and while this is encouraging, we know that there is scope to do
more.
The smaller part of our Air business is InMotion. LFL revenue was down 1%.
Since acquisition in 2018, we have doubled the profits and improved margins
significantly by over 500bps as a result of working closely with our
suppliers, reducing operating costs and fully integrating into our Air
business.
InMotion has an important role in the Group: it resonates strongly with
customers; it enables us to offer a market leading tech brand to landlords as
part of tenders; to maintain strong global relationships with key brands
such as Apple and Bose; to offer a broader selection of branded tech
accessories in our Travel Essentials stores and; to broaden our higher margin
own brand accessories ranges such as the Good Vibes range which is performing
well.
In the Resorts business, which is the smallest part of our North America
division and centred around Las Vegas, we saw total revenue on a constant
currency basis down 6% reflecting the annualisation of the closure of 16
stores following two hotel closures on the Strip as previously signposted. LFL
revenue was down 3% in the period, reflecting the phasing of the spring break
this year, and as we anniversaried the Super Bowl in the prior year.
REST OF THE WORLD
Total revenue for the period in ROW was up 15%(4) on a constant currency basis
and LFL revenue was up 9% on the prior year. Headline trading profit(1) was
£1m compared to a loss of £1m in the prior year.
Our approach is clear: to continue to build scale in the countries we have a
presence and enter new countries using our three operating models of
directly-run, joint venture and franchise, and, over time, leveraging our
fixed cost base to grow net margins.
During the period, we opened 17 stores in countries including Australia, Spain
and the UAE.
We are focusing on driving ATV and spend per passenger across these stores by
applying the same principles that we apply in the UK: expanding our categories
and introducing a broader offer for customers to include tech accessories,
health and beauty and food.
We have opened 3 InMotion stores across Copenhagen airport offering a world
class range of electronics for the travelling customer, as well as
experiential zones for brands to showcase their latest product launches.
In Australia, we now operate over 60 stores. Our focus in Australia is winning
new Travel Essentials stores across airports and, as we do in the US, we take
the learnings from our UK business and apply our retail disciplines, including
design, marketing and category development to improve the customer
proposition.
Outside of our Air business in Australia, we also operate in Hospitals. Alfred
Hospital in Melbourne is a good example of how we have broadened our customer
offer into a hospital environment. We have recently won all the food and
beverage concessions within this hospital, serving customers from 3 café
restaurants in the main food court. To provide a faster and more convenient
service, we have introduced self-service screens where customers can order and
pay easily and quickly.
This is an important gateway for the Group as we look to focus on growing our
food and beverage credentials, and we can use the learnings from this business
as we look to grow and adapt our food proposition across the globe.
The opportunities in this division are significant and where we are opening
new stores, we are pleased with their performance and we tend to track
significantly ahead of the previous incumbent.
We remain well-positioned to benefit from further opportunities as more space
becomes available. We now have 352 stores open; 54% are directly-run; 8% are
joint venture and; 38% are franchise. During the current financial year, we
expect to open c.30 stores and close c.26 stores.
Total Travel stores
During the year, we opened 30 stores in Travel. As at 28 February 2025, our
global Travel business operated from 1,278 stores (31 August 2024: 1,291). As
part of our strategy to improve the quality of our space, we closed 43 stores
in the half. 12 closures were the result of relocations or removing loss
makers, and 19 were small, franchised stores. Outside of planned
redevelopment, all of these closures were actioned in line with our strategy.
Our focus will remain on opening more stores and better quality space. As a
result, we expect to see further store closures in the current financial year
of c.10 stores and to open a further c.35 stores.
Excluding franchise stores, Travel occupies 1.2m square feet (31 August 2024:
1.2m square feet). See page 19 for analysis of store numbers by region.
HIGH STREET
High Street delivered a performance in line with market expectations for the
first half, with Headline trading profit(1) of £15m (2024: £22m) and revenue
of £239m (2024: £256m). We managed the business tightly, keeping focused on
costs and cash generation. LFL revenue was down 3% on last year.
As announced on 28 March 2025, we have agreed a sale of this business to
Modella Capital for an enterprise value of £76m. We expect the transaction to
complete in Q4 of the current financial year.
The sale does not include the WHSmith brand nor the Group's personalised
online greeting card business, funkypigeon.com. The assets and liabilities of
the High Street business have not been treated as held for sale in the interim
financial statements (see Note 1 to the financial statements for more
information).
As at 28 February 2025, the High Street business operated from 482 stores (31
August 2024: 500) which occupy 2.3m sq ft (31 August 2024: 2.4m sq ft). 18
stores were closed in the period.
FUNKYPIGEON.COM
This has been a period of investment for funkypigeon.com with higher levels of
spend on the platform and brand than in 2024. Funkypigeon.com delivered total
revenue of £18m (2024: £18m) and Headline EBITDA(1) was £nil (2024: £2m).
We continue to see opportunities to grow revenue and profit over the medium
term.
As announced on 28 March 2025, the Group is currently reviewing strategic
options for this part of the Group, including a possible sale.
ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE ('ESG')
We continue to make excellent progress against our key ESG commitments. We
know that our customers, colleagues and business partners all want us to act
in a responsible way and that operating sustainably enables better business
performance.
We are the top performing speciality retailer in Morningstar's Sustainalytics
ESG Benchmark and we have been awarded an ESG rating of AAA from MSCI. In
addition, we were included, once again, in the Dow Jones World Sustainability
Index.
Our Scope 1 and 2 emissions continue to decrease, and we are making good
progress towards our target for 45% of our supply chain emissions to be
covered by science-based targets by the end of the financial year.
We continue to champion children's literacy in partnership with the National
Literacy Trust. Our financial assistance is providing direct early years'
support to families in communities where help is needed. In North America, our
partnership with Miracle Flights continues to support children who need to
travel to receive life-changing medical care.
FINANCIAL REVIEW
Headline
IFRS pre-IFRS 16(1)
£m 6 months to 6 months to 6 months to 6 months to
Feb 2025 Feb 2024 Feb 2025 Feb 2024
Travel UK trading profit(1) 40 39 40 37
North America trading profit(1) 18 14 15 14
Rest of the World trading profit / (loss)(1) 5 1 1 (1)
Total Travel trading profit(1) 63 54 56 50
High Street trading profit(1) 20 27 15 22
Group profit from trading operations(1) 83 81 71 72
Unallocated central costs(1) (14) (13) (14) (13)
Group operating profit before non-underlying items(1) 69 68 57 59
Net finance costs (25) (24) (12) (13)
Group profit before tax and non-underlying items(1) 44 44 45 46
Non-underlying items(1) (86) (16) (70) (14)
Group (loss) / profit before tax (42) 28 (25) 32
Income tax credit / (charge) 2 (8) (3) (9)
(Loss) / profit for the period (40) 20 (28) 23
Attributable to:
Equity holders of the parent (43) 17 (31) 20
Non-controlling interests 3 3 3 3
(40) 20 (28) 23
Total Travel Headline trading profit(1) in the period was £56m (2024: £50m)
of which the largest division, Travel UK, generated a Headline trading
profit(1) of £40m (2024: £37m). North America delivered £15m (2024: £14m),
ROW £1m (2024: loss of £1m) and High Street £15m (2024: £22m).
The Group generated a Headline profit before tax and non-underlying items(1)
of £45m (2024: £46m) and, after non-underlying items and IFRS 16, a Group
loss before tax of £42m (2024: profit before tax of £28m).
Net finance costs
Headline
IFRS pre-IFRS 16(1)
£m 6 months to 6 months to 6 months to 6 months to
Feb 2025 Feb 2024 Feb 2025 Feb 2024
Interest payable on bank loans and overdrafts 5 6 5 6
Interest on convertible bonds 7 7 7 7
Interest on lease liabilities 13 11 - -
Net finance costs before non-underlying items 25 24 12 13
Headline net finance costs before non-underlying items(1) for the half were
£12m (2024: £13m). This includes cash costs of £7m and £4m relating to
the non-cash debt accretion charge from the convertible which has a fixed
coupon of 1.625%.
Lease interest of £13m (2024: £11m) arises on lease liabilities recognised
under IFRS 16, bringing the total net finance costs under IFRS 16 to £25m
(2024: £24m).
Tax
The effective tax rate(1) was 24% (2024: 24%) on the profit for the half. Net
corporation tax payments in the period were £17m (2024: £9m) after using all
possible loss relief. Based on current legislation, we expect the effective
tax rate(1) in the full year to be around 24%.
Earnings per share
Calculation of Headline earnings per share(1)
Headline
pre-IFRS 16(1)
6 months to 6 months to
Feb 2025 Feb 2024
Headline profit before tax(1, 12) (£m) 45 46
Income tax expense(12) (£m) (11) (11)
Headline profit for the period(12) (£m) 34 35
Attributable to non-controlling interests (£m) (3) (3)
Headline profit for the period attributable to equity holders of 31 32
WH Smith PLC(12) (£m)
Weighted average shares in issue (diluted) (no. of shares - millions) 130 131
Headline diluted EPS(1, 12) (p) 23.8p 24.4p
(12) Before non-underlying items
The above measures are calculated on a pre-IFRS 16 basis.
Headline diluted EPS(1) was 23.8p (2024: 24.4p), a decrease of 2% on the
previous year.
EPS calculated on an IFRS 16 basis is provided in Note 7 to the financial
statements, and a reconciliation between the IFRS 16 and pre-IFRS 16 earnings
per share is provided in Note A4 to the Glossary on page 43.
The diluted weighted average number of shares in issue used in the calculation
of Headline diluted EPS(1) assumes that the convertible bond is not dilutive
and reflects the number of shares held by the ESOP Trust.
Profit attributable to non-controlling interests primarily represents the
joint venture partner share of profit in relation to airport contracts in the
USA. As at 28 February 2025, the profit attributable to non-controlling
interests was £3m (2024: £3m).
Non-underlying items(1)
Items which are not considered part of the normal operating costs of the
business, are non-recurring and are exceptional because of their size, nature
or incidence, are treated as non-underlying items and disclosed separately.
Non-underlying items in the period are detailed in the table below. The cash
impact of non-underlying items in the half is £25m, which includes some
timing related spend from previous periods.
IFRS Headline
pre-IFRS 16(1)
£m Ref 6 months to Feb 2025 6 months to Feb 2024 Year ended Aug 2024 6 months to Feb 2025 6 months to Feb 2024 Year ended Aug 2024
Items included in the Income statement
Amortisation of acquired intangible assets 1 (2) (2) (3) (2) (2) (3)
Transformation programmes - IT 2 (5) (1) (5) (5) (1) (5)
Transformation programmes - operational efficiencies 3 (7) - - (7) - -
Provisions for onerous contracts 4 (1) (2) (6) (3) (2) (11)
Costs associated with pensions - (1) (2) - (1) (2)
IFRS 16 remeasurement gains - - 3 - - -
Re-platform of whsmith.co.uk and other costs - - (4) - - (4)
Impairment of goodwill 5 (15) - - (15) - -
Impairment of non-current assets 6 (40) (9) (30) (22) (6) (23)
Transformation programmes - supply chain 7 (2) (1) (4) (2) (1) (4)
Transformation programmes -High Street store portfolio 8 (8) - - (8) - -
Costs relating to M&A activity and Group legal entity structure 9 (6) - (4) (6) - (4)
Total non-underlying items recognised in the income statement before finance (86) (16) (55) (70) (13) (56)
costs
Finance costs - discount unwind on provisions for onerous contracts - - - - (1) (1)
Total non-underlying items recognised in the income statement (86) (16) (55) (70) (14) (57)
Items included in the Statement of comprehensive income
Remeasurement of the recoverability of the retirement benefit surplus - - 87 - - 87
Total non-underlying items including items recognised in the Statement of (86) (16) 32 (70) (14) 30
comprehensive income
(1) Amortisation of acquired intangible assets
Non-cash amortisation of acquired intangible assets of £2m (29 February 2024:
£2m) primarily relates to the MRG and InMotion brands.
(2) Transformation programmes - IT
Costs of £5m (29 February 2024: £5m) have been classified as non-underlying
in relation to Board-approved programmes relating to IT transformation (£5m),
which were commenced during the year ended 31 August 2024. The IT
transformation programme includes costs relating to upgrading core IT
infrastructure, data migration and investment in data security, store systems
modernisation and other significant IT projects. These strategic projects will
provide additional stability, longevity and operational benefits. The
implementation will cover several years and we anticipate total costs in the
year ending 31 August 2025 to be around £15m.
(3) Transformation programmes - operational efficiencies
Costs of £7m (29 February 2024: £nil) have been classified as non-underlying
in relation to Board-approved programmes relating to operational efficiencies.
This programme includes £4m of costs associated with the restructuring of
store and field management structures within the Travel UK segment, and £3m
of head office restructuring costs across all segments. This programme will
deliver a more efficient operating model to support the Group's strategic
objectives. The programme will be completed in the current financial year,
with expected second half costs of c.£4m.
(4) Provisions for onerous contracts
A charge of £3m on a pre-IFRS 16 basis (29 February 2024: £2m; IFRS 16 basis
£1m; 29 February 2024: £2m) has been recognised in the income statement to
provide for the unavoidable costs of continuing to service a number of
non-cancellable supplier and lease contracts where the space is vacant, a
contract is loss-making or currently not planned to be used for ongoing
operations. This provision will be utilised over the next two to four
financial years. The unwinding of the discount on provisions for onerous
contracts is treated as an imputed interest charge, and has been recorded in
non-underlying finance costs.
(5) Impairment of goodwill
The Group has carried out an assessment for indicators of impairment of
goodwill. Following a period of challenging trading conditions, a strategic
review of the High Street business was undertaken during the period. As a
result an impairment review of the goodwill associated with the High Street
business has been undertaken, based on management's latest view of the likely
future performance of the group of cash-generating units ('CGUs') that
comprise the High Street segment.
As a result of this exercise, a non-cash charge of £15m (29 February 2024:
£nil) was recorded within non-underlying items for impairment of goodwill.
Further information is provided in Note 8.
(6) Impairment of non-current assets
The Group has carried out an assessment for indicators of impairment of
non-current assets across the store and online portfolio. Where an indicator
of impairment has been identified, an impairment review has been performed to
compare the value-in-use of CGUs, based on management's assumptions regarding
likely future trading performance, to the carrying value of the CGUs.
Following the strategic review of the High Street business during the period
noted above, and management's latest estimates of the longer term prospects of
the division, it was determined that there was a pervasive indicator of
impairment in the High Street segment and therefore the entire High Street
store portfolio was assessed for impairment.
As a result of this exercise, a non-cash charge of £40m was recorded within
non-underlying items for impairment of property, plant and equipment,
intangible assets and right-of-use assets, of which £33m relates to the High
Street segment. Further information is provided in Note 8. The impairment
recognised on a pre-IFRS 16 basis is provided in the Glossary on page 43.
(7) Transformation programmes - supply chain
Costs of £2m (29 February 2024: £1m) have been classified as non-underlying
in relation to a Board-approved programme relating to supply chain which was
commenced during the year ended 31 August 2024.
The supply chain transformation programme includes costs of reconfiguration of
the Group's UK distribution centres following the outsourcing of operations to
a third party (GXO), in order to generate a more efficient and productive
supply chain to support the performance and growth of the Group's UK
businesses. This project will conclude in 2025, incurring similar costs as in
2024.
(8) Transformation programmes - High Street store portfolio
Costs of £8m have been incurred in relation to a High Street store portfolio
programme following a review of performance in the first half, and
management's latest estimates of the longer term prospects of the division. Of
these costs £6m relates to provisions for dilapidations for stores which have
been identified for closure. The remaining £2m relates to closure costs of
stores in the first half.
(9) Costs relating to M&A activity and Group legal entity structure
Costs incurred during the half primarily relate to legal and professional fees
incurred in relation to the proposed sale of the High Street business.
A tax credit of £13m (29 February 2024: £3m) has been recognised in relation
to the above items (£8m pre-IFRS 16 (29 February 2024: £2m)).
Cash flow
Free cash flow(1) reconciliation
pre-IFRS 16(1)
£m 6 months to Feb 2025 6 months to Feb 2024
Headline Group operating profit before non-underlying items(1) 57 59
Depreciation, amortisation and impairment (pre-IFRS 16)(13) 32 29
Non-cash items 5 6
Operating cash flow(1, 13) 94 94
Capital expenditure(8) (50) (65)
Working capital (pre-IFRS 16)(13) (87) (68)
Net tax paid (17) (9)
Net finance costs paid (pre-IFRS 16) (7) (8)
Movement on provisions (2) -
Free cash flow (1) (69) (56)
(13) Excludes cash flow impact of non-underlying items
The Group generated an operating cash flow(1) of £94m in the half (2024:
£94m) demonstrating the cash generative nature of the business.
As expected, we had a working capital outflow of £87m in the period (2024:
outflow of £68m). Most of this outflow results from the usual working capital
cadence in the Group, where there has been a large working capital outflow in
the first half, due to the seasonality in the Travel business. The balance
mainly relates to the investment in new stores.
For the full year, we expect to generate a free cash inflow, reflecting the
normal working capital cadence of the Group and the substantial level of
operating cash flows generated by the Group during the second half.
Net corporation tax payments in the period were £17m (2024: £9m).
Capital expenditure in the half was £50m(8) (2024: £65m) which includes the
spend from opening 30 stores around the world. We anticipate the full year
capex spend to be around £110m which includes the additional spend from
opening c.35 stores in the second half.
£m 6 months to Feb 2025 6 months to Feb 2024
New stores and store development 26 38
Refurbished stores 11 9
Systems 8 7
Other 5 11
Total capital expenditure 50 65
Reconciliation of Headline net debt(1)
Headline net debt(1) is presented on a pre-IFRS 16 basis. See Note 9 of the
Financial statements and Note A8 of the Glossary for net debt on an IFRS 16
basis.
As at 28 February 2025, the Group had Headline net debt(1) of £454m
comprising convertible bonds of £315m and net overdraft of £139m (31 August
2024: £371m, convertible bonds of £310m and net overdrafts of £61m).
Headline
pre-IFRS 16(1)
6 months to Year ended
£m Feb 2025 Feb 2024 Aug 2024
Opening Headline net debt(1) (371) (330) (330)
Free cash flow(1) (69) (56) 53
Dividends paid (29) (27) (41)
Non-underlying items(1) (25) (6) (28)
Purchase of own shares for cancellation (23) - -
Cash refund of pension surplus 75 - -
Net purchase of own shares for employee share schemes - (12) (12)
Other (12) (6) (13)
Closing Headline net debt(1) (454) (437) (371)
Net overdraft (139) (132) (61)
Convertible bond (315) (305) (310)
Headline net debt(1) (454) (437) (371)
In addition to the free cash outflow of £69m the Group returned £52m to
shareholders via the 2024 final dividend of £29m (2024: £27m) and £23m of
the £50m share buyback announced in November (2024: £nil). The cash spend on
non-underlying items in the first half of 2025 was £25m (2024: £6m) and
includes some timing related spend from previous periods. Other includes
non-cash accretion on the convertible bond, and payments to non-controlling
interests.
We anticipate full year Headline net debt(1) to be in the region of £400m.
On an IFRS 16 basis, net debt was £1,055m (2024: £1,039m), which includes an
additional £601m (2024: £602m) of lease liabilities.
Fixed charges cover(1)
pre-IFRS 16(1)
£m 6 months to Feb 2025 6 months to Feb 2024
Headline net finance costs before non-underlying items(1) 12 13
Net operating lease rentals (pre-IFRS 16) (Note A12) 181 168
Total fixed charges 193 181
Headline profit before tax and non-underlying items(1) 45 46
Headline profit before tax, non-underlying items and fixed charges 238 227
Fixed charges cover - times 1.2x 1.3x
Fixed charges, comprising property operating lease charges and net finance
costs, were covered 1.2 times (2024: 1.3 times) by Headline profit before tax,
non-underlying items and fixed charges.
Return on capital employed(1)
ROCE %
Feb 2025 Feb 2024
Travel UK 35% 32%
North America 15% 15%
Rest of the World 26% 16%
Total Travel 25% 23%
High Street 27% 37%
Group 22% 22%
Return on capital employed is calculated as the Headline trading profit(1) as
a percentage of operating capital employed and is stated on a pre-IFRS 16
basis. Operating capital employed is calculated as the 12-month average net
assets, excluding net debt, retirement benefit obligations and net current and
deferred tax balances.
Balance sheet
Headline
IFRS pre-IFRS 16(1)
£m Feb 2025 Feb 2024 Aug 2024 Feb 2025 Feb 2024 Aug 2024
Goodwill and other intangible assets 488 505 490 490 506 491
Property, plant and equipment 321 295 316 313 288 308
Right-of-use assets 467 484 505 - - -
Investments in joint ventures 2 2 2 2 2 2
1,278 1,286 1,313 805 796 801
Inventories 225 207 217 225 207 217
Payables less receivables (105) (151) (190) (92) (142) (183)
Working capital 120 56 27 133 65 34
Net derivative financial asset - - - - - -
Net current and deferred tax asset 54 47 33 54 47 33
Provisions (17) (18) (17) (30) (26) (28)
Operating assets 1,435 1,371 1,356 962 882 840
Net debt (1,055) (1,039) (997) (454) (437) (371)
Net assets excluding retirement benefit surplus 380 332 359 508 445 469
Retirement benefit surplus - - 87 - - 87
Total net assets 380 332 446 508 445 556
The Group had Headline net assets (before the retirement benefit surplus) of
£508m, £39m higher than at 31 August 2024 reflecting the investment in new
store openings and seasonality of working capital. Under IFRS the Group had
net assets of £380m (29 February 2024: £332m).
Events after the balance sheet date
As at 15 April 2025, the Company has repurchased a further 0.3m of its own
shares in the open market as part of the Company's share buyback programme for
an aggregate consideration of £4m.
Total Travel stores by region
No. of stores At 28 February 2025
Travel UK 582
North America
Air 258
Resorts / Rail 86
Total North America 344
Rest of the World
Europe 157
Middle East and India 78
Asia Pacific 117
Total Rest of the World 352
Total Travel 1,278
PRINCIPAL AND EMERGING RISKS AND UNCERTAINTIES
The Group's Annual Report and Accounts 2024, a copy of which is available on
the Group's website at www.whsmithplc.co.uk, sets out the principal and
emerging risks and uncertainties which could impact the Group for the
remainder of the current financial year along with mitigating activities
relevant to each risk (see Annual Report and Accounts 2024 pages 59 to 65).
These include:
· economic, political, competitive and market risks;
· brand and reputation;
· key suppliers and supply chain management;
· store portfolio;
· business interruption;
· reliance on key personnel;
· international expansion;
· cyber risk, data security and GDPR compliance;
· treasury, financial and credit risk management; and
· environment and social sustainability.
Reflecting the sale of the High Street business to Modella Capital agreed on
28 March 2025, that we expect to complete in final quarter of the financial
year, we anticipate including a further note within the Principal Risks
section of this year's annual report regarding the sale, as follows:
The sale of the High Street business carries certain risks. We have therefore
ensured that appropriate planning, mitigation and monitoring arrangements are
in place to oversee the continuity of operations for both businesses during
the transition period and a successful outcome of this transaction.
This announcement contains certain forward-looking statements with respect to
the operations, performance and financial condition of the Group. By their
nature, these statements involve uncertainty since future events and
circumstances can cause results to differ from those anticipated. Nothing in
this announcement should be construed as a profit forecast. We undertake no
obligation to update any forward-looking statements whether as a result of new
information, future events or otherwise.
WH Smith PLC
Condensed Group Income Statement
For the 6 months to 28 February 2025
6 months to 28 Feb 2025 6 months to 29 Feb 2024 12 months to 31 Aug 2024
(unaudited) (unaudited) (audited)
£m Note Before non-underlying items(1) Non-underlying items(2) Total Before non-underlying items(1) Non-underlying items(2) Total Before non-underlying items(1) Non-underlying items(2) Total
Revenue 2 951 - 951 926 - 926 1,918 - 1,918
Group operating profit / (loss) 2 69 (86) (17) 68 (16) 52 213 (55) 158
Finance costs 4 (25) - (25) (24) - (24) (52) - (52)
Profit / (loss) before tax 44 (86) (42) 44 (16) 28 161 (55) 106
Income tax (expense) / credit 5 (11) 13 2 (11) 3 (8) (38) 9 (29)
Profit / (loss) for the period 33 (73) (40) 33 (13) 20 123 (46) 77
Attributable to equity holders of the parent 30 (73) (43) 30 (13) 17 113 (46) 67
Attributable to non-controlling interests 3 - 3 3 - 3 10 - 10
33 (73) (40) 33 (13) 20 123 (46) 77
(Loss) / earnings per share
Basic 7 (33.6)p 13.2p 51.9p
Diluted 7 (33.6)p 13.0p 51.1p
( )
(1) Alternative Performance Measure. The Group has defined and explained the
purpose of its alternative performance measures in the Glossary on page 43.
(2) See Note 3 for an analysis of Non-underlying items. See Glossary on page
43 for definition of alternative performance measures.
WH Smith PLC
Condensed Group Statement of Comprehensive Income
For the 6 months to 28 February 2025
£m Note 6 months to 28 Feb 2025 6 months to 29 Feb 2024 12 months to
(unaudited) (unaudited) 31 Aug 2024
(audited)
(Loss) / profit for the period (40) 20 77
Other comprehensive income / (loss):
Items that will not be reclassified subsequently to the income statement:
Remeasurement of the recoverability of retirement benefit surplus - - 87
Actuarial gains on defined benefit pension schemes - 1 2
- 1 89
Items that may be reclassified subsequently to the income statement:
Gains on cash flow hedges
- Net fair value gains 1 - -
Exchange differences on translation of foreign operations 21 1 (15)
22 1 (15)
Other comprehensive income for the period, net of tax 22 2 74
Total comprehensive (loss) / income for the period (18) 22 151
Attributable to equity holders of the parent (23) 19 142
Attributable to non-controlling interests 5 3 9
(18) 22 151
WH Smith
PLC
Condensed Group Balance Sheet
As at 28 February 2025
At At At
£m 28 Feb 2025 29 Feb 2024 31 Aug 2024
Note (unaudited) (unaudited) (audited)
Non-current assets
Goodwill 8 428 437 426
Other intangible assets 8 60 68 64
Property, plant and equipment 8 321 295 316
Right-of-use assets 8 467 484 505
Investments in joint ventures 2 2 2
Investments 1 10 - -
Deferred tax assets 38 41 33
Trade and other receivables 11 9 12
1,337 1,336 1,358
Current assets
Inventories 225 207 217
Trade and other receivables 133 108 150
Retirement benefit surplus - - 87
Derivative financial assets - - -
Current tax receivable 16 6 1
Cash and cash equivalents 9 39 44 56
413 365 511
Total assets 1,750 1,701 1,869
Current liabilities
Trade and other payables (259) (268) (352)
Bank overdrafts and other borrowings 9 (178) (176) (117)
Lease liabilities 9 (120) (124) (125)
Current tax liability - - (1)
Short-term provisions (2) (3) (4)
(559) (571) (599)
Non-current liabilities
Bank loans and other borrowings 9 (315) (305) (310)
Long-term provisions (15) (15) (13)
Lease liabilities 9 (481) (478) (501)
(811) (798) (824)
Total liabilities (1,370) (1,369) (1,423)
Total net assets 380 332 446
Shareholders' equity
Called up share capital 11 28 29 29
Share premium 316 316 316
Capital redemption reserve 14 13 13
Translation reserve 10 6 (9)
Other reserves (267) (267) (268)
Retained earnings 245 207 335
Total equity attributable to equity holders of the parent 346 304 416
Non-controlling interests 34 28 30
Total equity 380 332 446
WH Smith PLC
Condensed Group Cash Flow Statement
For the 6 months to 28 February 2025
6 months to 12 months to
£m Note 28 Feb 2025 29 Feb 2024 31 Aug 2024
(unaudited) (unaudited) (audited)
Operating activities
Cash generated from operating activities 10 122 90 335
Interest paid(1) (19) (19) (42)
Income taxes paid (17) (9) (18)
Net cash inflow from operating activities 86 62 275
Investing activities
Purchase of property, plant and equipment (48) (58) (115)
Purchase of intangible assets (3) (7) (16)
Acquisition of subsidiaries, net of cash acquired - - (6)
Cash flows from investments 3 - -
Net cash outflow from investing activities (48) (65) (137)
Financing activities
Dividends paid 6 (29) (27) (41)
Purchase of own shares for employee share schemes - (12) (12)
Purchase of own shares for cancellation (23) - -
Distributions to non-controlling interests (4) (3) (6)
Net drawdown on short term borrowings 9 61 92 33
Capital repayments of obligations under leases 9 (60) (59) (112)
Net cash outflow from financing activities (55) (9) (138)
Net decrease in cash and cash equivalents in the period (17) (12) -
Opening cash and cash equivalents 56 56 56
Effect of movements in foreign exchange rates - - -
Closing cash and cash equivalents 39 44 56
(1) Includes interest payments of £12m on lease liabilities (29 February
2024: £11m; 31 August 2024: £25m)
WH Smith PLC
Condensed Group Statement of Changes in Equity
For the 6 months to 28 February 2025
£m Called up share capital and share premium Translation reserves Other reserves(1) Retained earnings Total equity attributable to equity holders of the parent Non-controlling interest Total equity
Capital redemption reserve
Balance at 1 September 2024 345 13 (9) (268) 335 416 30 446
(Loss) / profit for the period - - - - (43) (43) 3 (40)
Other comprehensive income / (loss):
Cash flow hedges - - - 1 - 1 - 1
Exchange differences on translation of foreign operations - - 19 - - 19 2 21
Total comprehensive income / (loss) for the period - - 19 1 (43) (23) 5 (18)
Repurchase of shares (1) 1 - - (23) (23) - (23)
Employee share schemes - - - - 5 5 - 5
Dividend paid (Note 6) - - - - (29) (29) - (29)
Distributions to non-controlling interest - - - - - - (4) (4)
Non-cash movement on non-controlling interests - - - - - - 3 3
Balance at 28 February 2025 (unaudited) 344 14 10 (267) 245 346 34 380
Balance at 1 September 2023 345 13 5 (255) 209 317 23 340
Profit for the period - - - - 17 17 3 20
Other comprehensive (loss) / income:
Actuarial gains on defined benefit pension schemes - - - - 1 1 - 1
Exchange differences on translation of foreign operations - - 1 - - 1 - 1
Total comprehensive (loss) / income for the period - - 1 - 18 19 3 22
Employee share schemes - - - (12) 6 (6) - (6)
Dividend paid (Note 6) - - - - (27) (27) - (27)
Deferred tax on share-based payments - - - - 1 1 - 1
Distributions to non-controlling interest - - - - - - (3) (3)
Non-cash movement on non-controlling interests - - - - - - 5 5
Balance at 29 February 2024 (unaudited) 345 13 6 (267) 207 304 28 332
Balance at 1 September 2023 345 13 5 (255) 209 317 23 340
Profit for the year - - - - 67 67 10 77
Other comprehensive (loss) / income:
Remeasurement of the recoverability of retirement benefit surplus - - - - 87 87 - 87
Actuarial gains on defined benefit pension schemes - - - - 2 2 - 2
Exchange differences on translation of foreign operations - - (14) - - (14) (1) (15)
Total comprehensive (loss) / income for the year - - (14) - 156 142 9 151
Employee share schemes - - - (13) 12 (1) - (1)
Dividends paid (Note 6) - - - - (41) (41) - (41)
Deferred tax on share-based payments - - - - (1) (1) - (1)
Distributions to non-controlling interest - - - - - - (6) (6)
Non-cash movement on non-controlling interests - - - - - - 4 4
Balance at 31 August 2024 (audited) 345 13 (9) (268) 335 416 30 446
(1) Other reserve includes Revaluation reserve of £2m (February 2024 and
August 2024: £2m), ESOP reserve of £(25)m (February 2024: £(27)m; August
2024: (£(27)m), convertible bond reserve of £40m (February 2024 and August
2024: £40m), hedging reserve of £1m (February 2024: £nil; August 2024:
£nil) and Other reserves of £(285)m (February 2024: £(282)m; August 2024:
£(283)m). The 'Other' reserve includes reserves created in relation to the
historical capital reorganisation and proforma restatement of £(238)m
(February 2024 and August 2024: £(238)m), the demerger from Smiths News PLC
in 2006 of £69m (February 2024 and August 2024: £69m) and cumulative amounts
relating to employee share schemes of £(116)m (February 2024: £(113)m;
August 2024: £(114)m).
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
1. Basis of preparation, Accounting policies and Approval of Interim Statement
These Condensed Interim Financial Statements for the 6 months ended 28
February 2025 have been prepared in accordance with UK-adopted International
Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
The interim financial statements do not include all of the notes of the type
normally included in an annual financial report. Accordingly, this report
should be read in conjunction with the Group's Annual Report and Accounts
2024, which has been prepared in accordance with UK-adopted international
accounting standards and the requirements of the Companies Act 2006, and any
public announcements made by WH Smith PLC during the interim reporting period.
The financial information set out in this report does not constitute statutory
accounts within the meaning of section 435 of the Companies Act 2006. The
Annual Report and Accounts 2024 have been filed with the Registrar of
Companies. The auditors' report on those accounts was unqualified, did not
include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying the report and did not contain statements under
s498(2) or s498(3) of the Companies Act 2006.
The Condensed Interim Financial Statements have been prepared in accordance
with the accounting policies set out in the 2024 Annual Report and Accounts
and it is these accounting policies which are expected to be followed in the
preparation of the full financial statements for the financial year ended 31
August 2025, except as outlined below.
Investments of £10m relate to an investment in Permira Credit Solutions III
Fund which was transferred to the Group following the buy out and wind up of
the Group's defined benefit pension scheme, WHSmith Pension Trust. This
investment is held at amortised cost, and is anticipated to convert to cash
over the next two years.
Taxes on income in the interim period are accrued using the tax rate that
would be applicable to the expected total annual profit or loss.
The Group has adopted the following standards and interpretations which became
mandatory for the first time during the current financial year. The adoption
of these standards has had no material impact on the Group.
IFRS 17 Insurance contracts
Amendments to IAS 1 Presentation of financial statements on classification of liabilities and
non-current liabilities with covenants
Amendments to IFRS 16 Leases - Lease Liability in a Sale and Leaseback
Amendment to IAS 7 and IFRS 7 Supplier finance arrangements
At the balance sheet date, the following standards and interpretations, which
have not been applied in these financial statements, were in issue but not yet
effective (and in some cases had not yet been endorsed by the UK):
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 19 Subsidiaries without Public Accountability: Disclosures
The directors anticipate that the adoption of these standards and
interpretations will have no material impact on the Group's financial
statements.
Alternative performance measures (APM's)
The Group has identified certain measures that it believes will assist the
understanding of the performance of the business. These APMs are not defined
or specified under the requirements of IFRS.
The Group believes that these APMs, which are not considered to be a
substitute for, or superior to, IFRS measures, provide stakeholders with
additional useful information on the underlying trends, performance and
position of the Group and are consistent with how business performance is
measured internally. The APMs are not defined by IFRS and therefore may not be
directly comparable with other companies' APMs.
The key APMs that the Group uses include: measures before non-underlying
items, Headline profit before tax, Headline earnings per share, trading
profit, Headline trading profit, Headline Group profit from trading
operations, like-for-like revenue, gross margin, fixed charges cover, Headline
EBITDA, effective tax rate, net debt and Headline net debt, free cash flow,
operating cash flow, return on capital employed and leverage. These APMs are
set out in the Glossary on page 43 including explanations of how they are
calculated and how they are reconciled to a statutory measure where relevant.
Non-underlying items
The Group has chosen to present a measure of profit and earnings per share
which excludes certain items, that are considered non-underlying and are not
considered to be part of the normal operations of the Group. The Group
believes that the separate disclosure of these items provides additional
useful information to users of the financial statements to enable a better
understanding of the Group's underlying financial performance.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
1. Basis of preparation, Accounting policies and Approval of Interim Statement
(continued)
Non-underlying items (continued)
The Group exercises judgement in determining whether income or expenses are
reported as non-underlying. This assessment includes consideration of the
size, nature or cause of occurrence of the item, as well as consistency with
prior periods. Non-underlying items can include, but are not limited to,
restructuring and transformation costs linked to Board agreed programmes,
costs relating to M&A activity, impairment charges and other property
costs, significant items relating to pension schemes, amortisation of
intangible assets acquired in business combinations, and the related tax
effect of these items. Reversals associated with items previously reported as
non-underlying, such as reversals of impairments and releases of provisions or
liabilities are also reported in non-underlying items.
Further details of the non-underlying items are provided in Note 3.
Items recognised in Other comprehensive income/loss may also be identified as
non-underlying for the purposes of narrative explanation of the Group's
performance, where the Group has determined that they are associated with the
above categories and are judged to have met the Group's definition of
non-underlying.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of condensed interim financial statements in conformity with
generally accepted accounting principles requires management to make
judgements, estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and
liabilities. Actual results could differ from these estimates and any
subsequent changes are accounted for with an effect on income at the time such
updated information becomes available.
The most critical accounting judgements and sources of estimation uncertainty
in determining the financial condition and results of the Group are those
requiring the greatest degree of subjective or complex judgement. These relate
to the classification of items as non-underlying, assessment of lease
substitution rights, determination of the lease term, impairment reviews of
non-current assets and inventory valuation.
The key areas where the judgments, estimates and assumptions applied have a
significant risk of causing a material adjustment to the carrying value of
assets and liabilities are consistent with those applied in the Group's
financial statements for the year ended 31 August 2024, as set out on pages
135 to 136 of those financial statements, except as explained below.
For details of changes to significant estimates for impairment of goodwill,
property, plant and equipment, intangible assets and right-of-use assets in
the current period, refer to Note 8.
On 28 March 2025, the Group announced the agreement of the sale of its High
Street business to Modella Capital. At the balance sheet date there was a high
degree of uncertainty over whether a sale agreement would be reached, with
alternative strategic options being considered by the directors, and therefore
the sale of the business was not considered to be highly probable given that a
significant change to the plan to sell was not unlikely. Consequently, as all
of the criteria of IFRS 5 were not met at the balance sheet date, the assets
and liabilities of the High Street business have not been presented as held
for sale in these interim financial statements, and its results have not been
presented as a discontinued operation.
Going concern
The Condensed Interim Financial Statements have been prepared on a going
concern basis.
The directors are required to assess whether the Group can continue to operate
for the 12 months from the date of approval of these financial statements.
The Group overview describes the Group's financial position, cash flows and
borrowing facilities and also highlights the principal risks and uncertainties
facing the Group. The Group overview also sets out the Group's business
activities together with the factors that are likely to affect its future
developments, performance and position.
In making the going concern assessment, the directors have undertaken a
rigorous assessment of current performance and forecasts for the 12-month
period to April 2026, including expenditure commitments, capital expenditure
and available borrowing facilities. The Group's borrowing facilities,
including the recent refinancing, are described in the Group overview on page
5. The covenants on these facilities are tested half-yearly and are based on
fixed charges cover and net borrowings. The directors have also considered the
existence of factors beyond the going concern period that could indicate that
the going concern basis is not appropriate.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
1. Basis of preparation, Accounting policies and Approval of Interim Statement
(continued)
Going concern (continued)
The directors have modelled a base case scenario consistent with the latest
Board approved forecasts, which include management's best estimates of market
conditions and include a number of assumptions including passenger numbers,
sales growth and cost inflation. Under this scenario the Group has significant
liquidity and complies with all covenant tests throughout the assessment
period.
As a result of uncertainty and challenges in the macroeconomic environment,
this base case scenario has been stress-tested by applying severe, but
plausible, downside assumptions of a magnitude and profile in line with
previous experience of economic downturns. These assumptions include
reductions to revenue assumptions of between 5 and 10 per cent versus the base
case, as appropriate by division, and additional inflationary pressures.
Except for an equal reduction in turnover-based rents in our Travel
businesses, this scenario does not assume a decrease in other variable costs,
and is therefore considered severe. Under this downside scenario the Group
would continue to have significant liquidity headroom on its existing
facilities and complies with all covenant tests throughout the assessment
period.
Following the announcement on 28 March 2025 of the proposed sale of the
Group's High Street business, the directors have modelled further scenarios,
under both base case and downside scenario assumptions, which exclude the
forecast results and cash flows of the High Street business. Under these
additional scenarios, the Group has sufficient liquidity and complies with all
covenant tests throughout the assessment period.
Based on the above analysis, the directors have concluded that the Group is
able to adequately manage its financing and principal risks, and that the
Group will be able to continue to meet its obligations as they fall due and
operate within the level of its facilities for at least 12 months from the
date of approval of these financial statements.
2. Segmental analysis of results
IFRS 8 requires segment information to be presented on the same basis as that
used by the Chief Operating Decision Maker for assessing performance and
allocating resources. The Group's operating segments are based on the reports
reviewed by the Board of Directors who are collectively considered to be the
chief operating decision maker.
For management and financial reporting purposes, the Group is organised into
two operating divisions which comprise four reportable segments - Travel UK,
North America, Rest of the World within the Travel division, and High Street.
The information presented to the Board is prepared in accordance with the
Group's IFRS accounting policies, on a pre-IFRS 16 basis, and is shown below
as Headline information in Section b). A reconciliation to statutory measures
is provided below in accordance with IFRS 8, and in the Glossary on page 43
(Note A2).
a) Group revenue
6 months to 12 months to
£m 28 Feb 2025 29 Feb 2024 31 Aug 2024
(unaudited)
(unaudited)
(audited)
Travel UK 384 360 795
North America 194 189 401
Rest of the World(1) 134 121 270
Total Travel 712 670 1,466
High Street 239 256 452
Group revenue 951 926 1,918
( )
(1) Rest of the World revenue includes revenue from Australia of £43m (29
February 2024: £42m), Ireland £27m (29 February 2024: £23m) and Spain £24m
(29 February 2024: £22m). No other country has individually material revenue.
Seasonality
Revenue in the High Street business is subject to seasonal fluctuations, with
peak demand in the Christmas trading period, which falls in the first half of
the Group's financial year. Revenue in the Travel business is also subject
to seasonal fluctuations, with higher demand during peak travel periods
particularly during the summer holiday months, which fall in the second half.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
2. Segmental analysis of results (continued)
b) Group results
6 months to 28 Feb 2025 (unaudited) 6 months to 29 Feb 2024 (unaudited)
£m Headline (pre-IFRS 16)(1) Headline non-underlying items (pre-IFRS 16) (1) IFRS 16 Total Headline (pre-IFRS 16)(1) Headline non-underlying items (pre-IFRS 16) (1) IFRS 16 Total
Travel UK trading profit 40 - - 40 37 - 2 39
North America trading profit 15 - 3 18 14 - - 14
Rest of the World trading profit / (loss) 1 - 4 5 (1) - 2 1
Total Travel trading profit 56 - 7 63 50 - 4 54
High Street trading profit 15 - 5 20 22 - 5 27
Group profit from trading operations 71 - 12 83 72 - 9 81
Unallocated central costs (14) - - (14) (13) - - (13)
Group operating profit before non-underlying items 57 - 12 69 59 - 9 68
Non-underlying items (Note 3) - (70) (16) (86) - (13) (3) (16)
Group operating profit / (loss) 57 (70) (4) (17) 59 (13) 6 52
Finance costs (12) - (13) (25) (13) (1) (10) (24)
Group profit / (loss) before tax 45 (70) (17) (42) 46 (14) (4) 28
Income tax (expense) / credit (11) 8 5 2 (11) 2 1 (8)
Profit / (loss) for the period 34 (62) (12) (40) 35 (12) (3) 20
(1) Presented on a pre-IFRS 16 basis. Alternative Performance Measures are
defined and explained in the Glossary on page 43.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
2. Segmental analysis of results (continued)
c) Other segmental items
6 months to 28 Feb 2025 (unaudited)
Non-current assets(1) Right-of-use assets
£m Capital additions Depreciation and amortisation Impairment Depreciation Impairment
Travel UK 13 (11) - - -
North America 20 (10) - - -
Rest of the World 6 (4) - - -
Total Travel 39 (25) - - -
High Street 11 (7) - - -
Headline, before non-underlying items 50 (32) - - -
Headline non-underlying items (pre-IFRS 16) - (2) (37) - -
Headline, after non-underlying items 50 (34) (37) - -
Impact of IFRS 16 - (1) - (55) -
Non-underlying items (IFRS 16) - - - - (18)
Group 50 (35) (37) (55) (18)
6 months to 29 Feb 2024 (unaudited)
Non-current assets(1) Right-of-use assets
£m Capital additions Depreciation and amortisation Impairment Depreciation Impairment
Travel UK 21 (9) - - -
North America 26 (8) - - -
Rest of the World 6 (3) - - -
Total Travel 53 (20) - - -
High Street 9 (8) - - -
Unallocated - (1) - - -
Headline, before non-underlying items 62 (29) - - -
Headline non-underlying items (pre-IFRS 16) - (2) (6) - -
Headline, after non-underlying items 62 (31) (6) - -
Impact of IFRS 16 - (1) - (53) -
Non-underlying items (IFRS 16) - - - - (3)
Group 62 (32) (6) (53) (3)
(1) Non-current assets including property, plant and equipment and intangible
assets (including goodwill), but excluding right-of-use assets.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
3. Non-underlying items
Items which are not considered part of the normal operating costs of the
business are non-recurring and are considered exceptional because of their
size, nature or incidence, are treated as non-underlying items and disclosed
separately. Further details of the definition of the non-underlying items are
included in Note 1.
6 months to 12 months to
£m 28 Feb 2025 29 Feb 2024 31 Aug 2024
(audited)
(unaudited) (unaudited)
Amortisation of acquired intangible assets 2 2 3
Transformation programmes - IT 5 1 5
Transformation programmes - operational efficiencies 7 - -
Provisions for onerous contracts 1 2 6
Costs associated with pensions - 1 2
IFRS16 remeasurement gains - - (3)
Re-platform of whsmith.co.uk and other costs - - 4
Impairment of non-current assets
- goodwill associated with High Street 15 - -
- property, plant and equipment and intangible assets 22 6 20
- right-of-use assets 18 3 10
Transformation programmes - High Street store portfolio 8 - -
Transformation programmes - supply chain 2 1 4
Costs relating to M&A activity and Group legal entity structure 6 - 4
Non-underlying items, included in operating profit 86 16 55
Finance costs associated with refinancing - - -
Non-underlying items, before tax 86 16 55
Tax credit on non-underlying items (13) (3) (9)
Non-underlying items, after tax 73 13 46
Amortisation of acquired intangible assets
Non-cash amortisation of acquired intangible assets primarily relates to the
MRG and InMotion brands.
Transformation programmes - IT
Costs of £5m (Feb 2024: £2m) have been classified as non-underlying in
relation to IT transformation programmes, which were commenced during the year
ended 31 August 2024. The IT transformation programme includes costs relating
to upgrading core IT infrastructure, data migration and investment in data
security, store systems modernisation and other significant IT projects. These
strategic projects will provide additional stability, longevity and
operational benefits. The implementation will cover several years, and we
anticipate total costs in the year ending 31 August 2025 to be around £15m.
Transformation programmes - operational efficiencies
Costs of £7m (Feb 2024: £nil) have been classified as non-underlying in
relation to Board-approved programmes relating to operational efficiencies.
This programme includes £4m of costs associated with the restructuring of
store and field management structures within the Travel UK segment, and £3m
of head office restructuring costs across all segments. This programme will
deliver a more efficient operating model to support the Group's strategic
objectives. The programme will be completed in the current financial year,
with expected second half costs of c.£4m.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
3. Non-underlying items (continued)
Impairment of goodwill
The Group has carried out an assessment for indicators of impairment of
goodwill. Following a period of challenging trading conditions, a strategic
review of the High Street business was undertaken during the period. As a
result, an impairment review of the goodwill associated with the High Street
business has been undertaken, based on management's latest view of the likely
future performance of the group of cash-generating units ('CGUs') that
comprise the High Street segment.
The recoverable amount has been calculated using value-in-use calculations of
all of CGUs that make up the High Street segment, based on management's
assumptions regarding likely future trading performance. This has been
compared to the carrying value of all CGUs, including goodwill, as at 28
February 2025. Value-in-use was determined to be higher than fair value less
costs of disposal. As a result of this exercise, a non-cash charge of £15m
(Feb 2024: £nil) was recorded within non-underlying items for impairment of
goodwill. Further information is provided in Note 8.
Impairment of property, plant and equipment, intangible assets and
right-of-use assets
The Group has carried out an assessment for indicators of impairment of
non-current assets across the store and online portfolio. Where an indicator
of impairment has been identified, an impairment review has been performed to
compare the value-in-use of CGUs, based on management's assumptions regarding
likely future trading performance, to the carrying value of the CGUs.
Following the strategic review of the High Street business during the period
noted above, and management's latest estimates of the longer term prospects of
the division, it was determined that there was a pervasive indicator of
impairment in the High Street segment and therefore each CGU within the High
Street store portfolio was assessed for impairment.
As a result of this exercise, a non-cash charge of £40m was recorded within
non-underlying items for impairment of property, plant and equipment,
intangible assets and right-of-use assets, of which £33m relates to the High
Street segment. Further information is provided in Note 8. The impairment
recognised on a pre-IFRS 16 basis is provided in the Glossary on page 43.
Transformation programmes - High Street store portfolio
Costs of £8m have been incurred in relation to a High Street store portfolio
programme following a review of performance in the first half, and
management's latest estimates of the longer term prospects of the division. Of
these costs a charge in the period of £6m relates to additional provisions
for dilapidations for stores which have been identified for closure. The
remaining £2m relates to closure costs of stores in the first half.
Transformation programmes - Supply chain
Costs of £2m (Feb 2024: £2m) have been classified as non-underlying in
relation to a Board-approved programme relating to supply chain which was
commenced during the year ended 31 August 2024. The supply chain
transformation programme includes costs of reconfiguration of the Group's UK
distribution centres following the outsourcing of operations to a third party
(GXO), in order to generate a more efficient and productive supply chain to
support the performance and growth of the Group's UK businesses. This project
will conclude in 2025, with second half costs similar to the first half.
Cost relating to M&A activity and Group legal entity structure
Costs incurred during the year primarily relate to legal and professional fees
incurred in relation to the proposed sale of the High Street business.
A tax credit of £13m (Feb 2024: £3m) has been recognised in relation to
non-underlying items.
Other prior year non-underlying items
Other non-underlying costs incurred during the prior year included:
- costs relating to professional fees associated with the buy out of
the WHSmith Pension Trust (29 February 2024: £1m; 31 August 2024: £2m);
- costs in relation to the reconfiguration of the Group's online
operations, and costs associated with the resolution of a long running dispute
(29 February 2024: £nil; 31 August 2024: £4m); and,
- IFRS 16 remeasurement gains that have resulted from the
derecognition of lease liabilities on exit from certain locations, in which
right-of-use assets were previously impaired (29 February 2024: £nil; 31
August 2024: £3m).
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
4. Finance costs
6 months to 12 months to
£m 28 Feb 2025 29 Feb 2024 31 Aug 2024
(unaudited) (unaudited) (audited)
Interest payable on bank loans and overdrafts 5 6 13
Interest on convertible bonds 7 7 14
Interest on lease liabilities 13 11 25
25 24 52
( )
Interest on convertible bonds includes £3m accrued coupon (29 February 2024:
£3m) and £4m non-cash debt accretion charge (29 February 2024: £4m).
5. Income tax (expense) / credit
6 months to 12 months to
£m 28 Feb 2025 29 Feb 2024 31 Aug 2024
(unaudited) (unaudited) (audited)
Tax on profit 9 5 21
Adjustment in respect of prior periods - - -
Total current tax expense 9 5 21
Deferred tax - current period 2 6 22
Deferred tax - prior period - - (5)
Tax expense on profit before non-underlying items 11 11 38
Tax on non-underlying items - current tax (7) - (1)
Tax on non-underlying items - deferred tax (6) (3) (8)
Total tax (credit) / expense on profit (2) 8 29
The effective tax rate, before non-underlying items, was a charge of 24 per
cent (29 February 2024: charge of 24 per cent). The UK corporation tax rate is
25 per cent.
The legislation implementing the Organisation for Economic Co-Operation and
Development's (OECD) proposals for a global minimum corporation tax rate
(Pillar Two) was substantively enacted in the UK on 20 June 2023 and applies
to reporting periods beginning on or after 1 January 2024.
Under the legislation the Group is liable to pay a top-up tax for the
difference between their Global Anti-Base Erosion Rules (GloBE) effective tax
rate per jurisdiction and the 15% minimum rate. The rules are applicable to
the Group for the year ended 31 August 2025. The Group has performed an
assessment of the Group's potential exposure to Pillar Two top-up taxes. Based
on this assessment, the Pillar Two effective tax rates in most of the
jurisdictions in which the Group operates are above 15% or will meet the
financial thresholds required to meet the Transitional Safe Harbour Rules.
However, there are a limited number of jurisdictions where the Transitional
Safe Harbour relief does not apply, and the Pillar Two effective rate is close
to 15%. There is no material exposure to Pillar Two taxes in those
jurisdictions.
The Group applies the temporary exception from the accounting requirements for
deferred taxes in IAS 12. Accordingly, the Group neither recognises nor
discloses information about deferred taxes in relation to Pillar Two.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
6. Dividends
Amounts paid and recognised as distributions to shareholders in the period are
as follows:
6 months to 12 months to
£m 28 Feb 2025 29 Feb 2024 31 Aug 2024
(unaudited) (unaudited) (audited)
Dividends
Final dividend for the year ended 31 August 2024 of 22.6p 29 - -
per ordinary share
Final dividend for the year ended 31 August 2023 of 20.8p per ordinary share - 27 27
Interim dividend for the year ended 31 August 2024 of 11.0p per ordinary share - - 14
29 27 41
The directors have declared an interim dividend in respect of the period
ending 28 February 2025 of 11.3p per ordinary share. This will be paid on 31
July 2025 to shareholders registered at the close of business on 11 July 2025.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
( )
7. (Loss) / earnings per share
a) (Loss) / earnings
6 months to 12 months to
£m 28 Feb 2025 29 Feb 2024 31 Aug 2024
(unaudited) (unaudited) (audited)
(Loss) / profit for the period attributable to equity holders of the parent (43) 17 67
Non-underlying items, after tax (Note 3) 73 13 46
Profit for the period before non-underlying items attributable to equity holders of the parent 30 30 113
b) Weighted average share capital
6 months to 12 months to
Millions 28 Feb 2025 29 Feb 2024 31 Aug 2024
(unaudited) (unaudited) (audited)
Weighted average ordinary shares in issue 130 131 131
Less weighted average ordinary shares held in ESOP Trust (2) (2) (2)
Weighted average ordinary shares for basic earnings per share 128 129 129
Add weighted average number of ordinary shares under option 2 2 2
Weighted average ordinary shares for diluted earnings per share 130 131 131
( )
c) Basic and diluted (loss) / earnings per share
6 months to 12 months to
Pence 28 Feb 2025 29 Feb 2024 31 Aug 2024
(unaudited) (unaudited) (audited)
Basic (loss) / earnings per share (33.6) 13.2 51.9
Adjustments for non-underlying items 57.0 10.1 35.7
Basic earnings per share before non-underlying items 23.4 23.3 87.6
Diluted (loss) / earnings per share (33.6) 13.0 51.1
Adjustments for non-underlying items 56.2 9.9 35.2
Impact of antidilutive potential shares 0.5 - -
Diluted earnings per share before non-underlying items 23.1 22.9 86.3
Diluted earnings per share takes into account various share awards and share
options including SAYE schemes, which are expected to vest, and for which a
sum below fair value will be paid.
When the numerator in the earnings per share calculation is a loss, the
weighted average number of ordinary shares applied is the basic value, rather
than the diluted value, as the inclusion of potentially dilutive shares would
improve the loss per share.
As at 28 February 2025 the convertible bond has no dilutive effect as the
inclusion of these potentially dilutive shares would improve earnings per
share (29 February 2024 and 31 August 2024: No dilutive effect).
The calculation of EPS on a pre-IFRS 16 basis is provided in the Glossary on
page 43.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
( )
8. Non-current assets
During the 6 months to 28 February 2025, there were additions to property,
plant and equipment of £47m (29 February 2024: £55m). There were no material
disposals of tangible assets during the period (29 February 2024: £nil).
During the 6 months to 28 February 2025, there were additions to right-of-use
assets of £28m (29 February 2024: £100m) through signing of new leases and
lease modifications.
Additions to intangible assets totalled £3m (29 February 2024: £7m) in the
period. There were no material disposals of intangible assets during the
period (29 February 2024: £nil).
Goodwill increased by £2m in the period, as a result of impairment of
goodwill associated with the High Street segment of £15m as described below,
offset by movements in exchange rates of £17m (29 February 2024: increased by
£1m as a result of movements in exchange rates).
Impairment of non-current assets
For impairment testing purposes, the Group has determined that each store is a
separate CGU or in some cases a group of stores is considered to be a CGU
where the stores do not generate largely independent cash inflows. The
identified indicators include loss-making stores, stores earmarked for closure
and under-performance of individual stores versus forecast.
Total impairments to non-current assets of £55m (29 February 2024: £9m) have
been presented as non-underlying items (see Note 3).
High Street segment
Following the strategic review of the High Street business during the period
referenced in Note 3, and based on management's latest estimates of the longer
term prospects of this division, it was determined that there was a pervasive
indicator of impairment in the High Street segment and therefore the entire
High Street store portfolio was assessed for impairment.
The recoverable amount of each of the High Street CGUs has been determined
through value-in-use calculations. The recoverable amount has been calculated
using discounted cash flows derived from the Group's latest Board-approved
forecast, which reflects historical performance and knowledge of the current
market, together with management's latest views on the future profitability of
each CGU. Cash flows have been forecasted for up to five years, and reflect
management's assessment of expected store closures and closure costs.
In addition, an impairment review of the goodwill associated with the High
Street business of £15m, has been undertaken. The recoverable amount has been
calculated based on the total value-in-use of all High Street CGUs as outlined
above, and this has been compared to the carrying value of all High Street
CGUs, including goodwill, as at 28 February 2025.
As a result of this exercise the Group has recognised a total impairment
charge of £48m in relation to High Street non-current assets (29 February
2024: £4m), of which £15m relates to goodwill (29 February 2024: £nil),
£15m property, plant and equipment (29 February 2024: £3m), £1m intangible
assets (primarily software) (29 February 2024: £1m), and £17m right of use
assets (29 February 2024: £nil).
The key assumptions on which the forecast cash flows of the High Street CGUs
are based include revenue and the pre-tax discount rate. Other assumptions in
the model relate to gross margin and cost inflation. In developing these
forecasts, management have used available information, including historical
knowledge of the store level cash flows.
The pre-tax discount rates are derived from the Group's weighted average cost
of capital, which has been calculated using the capital asset pricing model,
the inputs of which include the risk-free rate, equity risk premium, Group
size premium and a risk adjustment (beta). The pre-tax discount rate used in
the calculations was 11.7 per cent (31 August 2024: 10.7 per cent).
As disclosed in Note 1, Basis of preparation, the forecast cash flows used
within the impairment model are based on assumptions which are sources of
estimation uncertainty and changes to these assumptions could lead to further
impairments to assets. The Group has applied, in isolation, an increase in the
discount rate of two per cent and a reduction in expected future cash flows of
10 per cent. Neither of these sensitivities resulted in a material change to
the calculated impairment charge.
The impairment was based on value-in-use, as this was determined to be higher
than fair value less costs to sell, and the business was not considered to be
held for sale as at 28 February 2025 (see Note 1). The impact on the
impairment of the High Street assets of final disposal accounting will be
determined at the time of completion.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
8. Non-current assets (continued)
Impairment of non-current assets (continued)
Travel UK, North America and Rest of the World segments
No pervasive indicator of impairment has been identified for the Group's other
segments.
For those CGUs where an indicator of impairment has been identified, property,
plant and equipment and right-of-use assets have been tested for impairment by
comparing the carrying amount of the CGU with its recoverable amount
determined from value-in-use calculations. It was determined that value-in-use
was higher than fair value less costs to sell. Where the value-in-use was less
than the carrying value of the CGU, an impairment of property, plant and
equipment and right-of-use assets has been recorded.
In addition to the amounts noted in relation to High Street, the Group has
also recognised an impairment charge of £5m to property, plant and equipment
and intangible assets (29 February 2024: £6m) and £2m to right-of-use assets
(29 February 2024: £3m) as a result of impairment testing of non-current
assets in the other segments.
9. Analysis of net debt
Movement in net debt can be analysed as follows:
£m Convertible bonds Revolving credit facility Leases(1) Sub-total Cash and cash equivalents Net debt
Liabilities from financing activities
At 1 September 2024 (310) (117) (626) (1,053) 56 (997)
Bond accretion and fee amortisation (5) - - (5) - (5)
Lease additions, modifications and interest - - (38) (38) - (38)
Cash movements - (61) 72 11 (17) (6)
Currency translation - - (9) (9) - (9)
At 28 February 2025 (unaudited) (315) (178) (601) (1,094) 39 (1,055)
(1) Cash movements on Leases include £12m (2024: £11m) of interest paid
presented within cash flow from operating activities.
£m Convertible bonds Revolving credit facility Leases Sub-total Cash and cash equivalents Net debt
Liabilities from financing activities
At 1 September 2023 (301) (84) (566) (951) 56 (895)
Bond accretion and fee amortisation (4) - - (4) - (4)
Lease additions, modifications and interest - - (106) (106) - (106)
Cash movements - (92) 70 (22) (12) (34)
At 29 February 2024 (unaudited) (305) (176) (602) (1,083) 44 (1,039)
An explanation of Alternative performance measures, including Net debt on a
pre-IFRS 16 basis is provided in the Glossary on page 43.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
9. Analysis of net debt (continued)
Cash and cash equivalents
Cash and cash equivalents comprise cash held by the Group and short-term bank
deposits with an original maturity of three months or less. The carrying
amount of these assets approximates to their fair value.
Lease liabilities
Non-cash movements in lease liabilities mainly relate to new leases,
modifications and remeasurements in the period.
Revolving credit facilities
The Group has a £400m five-year committed revolving credit facility ('RCF')
with a maturity date of 13 June 2029. The RCF has one remaining uncommitted
extension option of one year, which would, subject to lender approval, extend
the maturity date to June 2030, if exercised. The RCF is provided by a
syndicate of banks: Barclays Bank PLC, BNP Paribas, Citibank N.A. London
Branch, Fifth Third Bank National Association, HSBC UK Bank PLC, JP Morgan
Securities PLC, PNC Capital Markets LLC, Banco Santander SA London Branch and
Skandinaviska Enskilda Banken AB (PUBL). Utilisation is interest bearing at a
margin over SONIA. As at 28 February 2025, the Group has drawn down £178m on
the RCF (2024: £176m).
Transaction costs of £4m relating to the RCF are amortised to the Income
statement on a straight-line basis.
Convertible bonds
The Group issued £327m guaranteed senior unsecured convertible bonds on 7 May
2021 with a 1.625% per annum coupon payable semi-annually in arrears in equal
instalments. The bonds are convertible into new and/or existing ordinary
shares of WH Smith PLC. The initial conversion price was set at £24.99
representing a premium of 40% above the reference share price on 28 April 2021
(£17.85). If not previously converted, redeemed or purchased and cancelled,
the Bonds will be redeemed at par on 7 May 2026.
The convertible bond is a compound financial instrument, consisting of a
financial liability component and an equity component, representing the value
of the conversion rights. The initial fair value of the liability portion of
the convertible bond was determined using a market interest rate for an
equivalent non-convertible bond at the issue date. The liability is
subsequently recognised on an amortised cost basis using the effective
interest rate method until extinguished on conversion or maturity of the
bonds. The remainder of the proceeds were allocated to the conversion option
and recognised in equity (Other reserves), and not subsequently remeasured. As
a result, £41m of the initial proceeds of £327m was recognised in equity
representing the option component.
Transaction costs of £6m were allocated between the two components and the
element relating to the debt component of £5m is amortised through the
effective interest rate method. The issue costs apportioned to the equity
component of £1m have been deducted from equity.
The carrying value of the convertible bond on the Group's balance sheet is
£315m. The fair value of the convertible bond has been estimated at £312m
using a discounted cash flow approach based on market interest rates. This
represents Level 2 fair value measurements as defined by IFRS 13.
Refinancing
On 25 March 2025 the Group announced the completion of a £200m issue of US
Private Placement (USPP) notes and a new bank term loan of £120m. Both
facilities remain undrawn as at 15 April 2025.
The USPP notes have a maturity of seven, ten and twelve years and have been
issued on investment grade terms.
The Group has agreed a £120m three-year term loan with two uncommitted
extension options of one year each, which would, subject to lender approval,
extend the tenor of the new bank loan to four and five years, if exercised.
The term loan is provided by a syndicate of existing lending banks comprising:
Fifth Third Bank National Association, HSBC UK Bank PLC, Banco Santander
SA, London branch and Skandinaviska Enskilda Banken AB (PUBL).
This refinancing will diversify the Group's sources of debt financing and
extends the Group's debt maturity profile in advance of the convertible bond
maturing on 7 May 2026. The income statement cost of the replacement financing
will be c.6.3%.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
10. Cash generated from operating activities
6 months to 12 months to
£m 28 Feb 2025 29 Feb 2024 31 Aug 2024
(unaudited) (unaudited) (audited)
Group operating (loss) / profit (17) 52 158
Depreciation of property, plant and equipment 28 26 49
Impairment of property, plant and equipment 21 4 15
Amortisation of intangible assets 7 6 15
Impairment of intangible assets 1 2 5
Impairment of goodwill 15 - -
Depreciation of right-of-use assets 55 53 112
Impairment of right-of-use assets 18 3 10
Non-cash change in lease liabilities - - (3)
Non-cash movement in pensions - - 1
Share-based payments 5 6 11
Gains on remeasurement of leases - (2) (4)
Other non-cash items (incl. foreign exchange) (7) 1 9
(Increase) / decrease in inventories (5) (2) (15)
Decrease / (increase) in receivables 20 8 (41)
(Decrease) / increase in payables (94) (69) 10
Movement on provisions (via utilisation or income statement) - 2 3
Receipt of retirement benefit surplus 75 - -
Cash generated from operating activities 122 90 335
11. Called Up Share Capital
28 Feb 2025 29 Feb 2024 31 Aug 2024
(unaudited) (unaudited) (audited)
Number of shares (millions) Nominal value Number of shares (millions) Nominal value Number of shares (millions) Nominal value
£m £m £m
Equity
Ordinary shares of 22 6/67p 129 28 131 29 131 29
Total 129 28 131 29 131 29
During the period, the Company repurchased 1.9m (29 February 2024: nil) of its
own shares in the open market for an aggregate consideration of £23m (2024:
£nil).
As at 15 April 2025 the Group has repurchased a further 0.3m of its own shares
in the open market as part of the Group's share buyback programme, for an
aggregate consideration of £4m.
The holders of ordinary shares are entitled to receive dividends as declared
from time-to-time and are entitled to one vote per share at the meetings of
the Company.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
12. Contingent liabilities and capital commitments
£m 28 Feb 2025 29 Feb 2024 31 Aug 2024
(unaudited) (unaudited) (audited)
Bank guarantees and guarantees in respect of contractual arrangements 73 67 71
Bank guarantees are principally in favour of landlords and could be drawn down
on by landlords in the event that the Group does not settle its contractual
obligations under lease or other agreements.
At 28 February 2025, contracts placed for future capital expenditure approved
by the directors but not provided for amounted to £27m (29 February 2024:
£23m).
13. Related parties
Other than directors' remuneration, there have been no material related party
transactions during the interim period under review.
14. Events after the balance sheet date
Share buyback programme
As at 15 April 2025 the Group has repurchased a further 0.3m of its own shares
in the open market as part of the Group's share buyback programme, for an
aggregate consideration of £4m.
Refinancing
On 25 March 2025 the Group announced the successful completion of
a £200m issue of US Private Placement (USPP) notes and a bank term loan
of £120m. Further information is provided in Note 9.
Sale of High Street business
On 28 March 2025, the Group agreed the sale of its High Street business to
Modella Capital. All stores, colleagues, assets and liabilities of the High
Street business will move under Modella Capital's ownership as part of the
Transaction. The High Street business will operate for a short transitional
period under the WHSmith brand.
The transaction is expected to complete in the final quarter of the Group's
current financial year, with anticipated gross cash proceeds of £36m at
completion (subject to working capital adjustments based on timing of
completion), a further £6m 12 months following completion, and up
to £10m of additional proceeds based on timing and realisation of certain
tax assets within the High Street business.
The High Street business is not accounted for as held for sale in these
interim financial statements. See Note 1 on page 26 for further information.
WH Smith PLC
Notes to the Condensed Interim Financial Statements
For the 6 months to 28 February 2025
Statement of Directors' Responsibilities
The directors confirm that these Condensed Interim Financial Statements have
been prepared in accordance with UK adopted International Accounting Standard
34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct Authority and that
the interim management report includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8, namely:
• an indication of important events that have occurred during the first six
months and their impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the remaining six
months of the financial year; and
• material related-party transactions in the first six months and any material
changes in the related-party transactions described in the last annual report.
The Directors of WH Smith PLC are listed on the website at
www.whsmithplc.co.uk/about-us/our-board
(http://www.whsmithplc.co.uk/about-us/our-board) .
By order of the Board
Carl Cowling
Max
Izzard
Group Chief Executive Chief
Financial Officer
16 April 2025
Independent review report to WH Smith PLC
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed WH Smith Plc's condensed consolidated interim financial
statements (the "interim financial statements") in the Interim Results
Announcement of WH Smith PLC for the 6 month period ended 28 February 2025
(the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Condensed Group Balance Sheet as at 28 February 2025;
· the Condensed Group Income Statement and Condensed Group Statement of
Comprehensive Income for the period then ended;
· the Condensed Group Cash Flow Statement for the period then ended;
· the Condensed Group Statement of Changes in Equity for the period
then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim Results Announcement
of WH Smith PLC have been prepared in accordance with UK adopted International
Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Interim Results
Announcement and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the interim financial
statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Interim Results Announcement, including the interim financial statements,
is the responsibility of, and has been approved by the directors. The
directors are responsible for preparing the Interim Results Announcement in
accordance with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority. In preparing the Interim
Results Announcement, including the interim financial statements, the
directors are responsible for assessing the group's ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend
to liquidate the group or to cease operations, or have no realistic
alternative but to do so.
Independent review report to WH Smith PLC (continued)
Responsibilities for the interim financial statements and the review
(continued)
Our responsibilities and those of the directors (continued)
Our responsibility is to express a conclusion on the interim financial
statements in the Interim Results Announcement based on our review. Our
conclusion, including our Conclusions relating to going concern, is based on
procedures that are less extensive than audit procedures, as described in the
Basis for conclusion paragraph of this report. This report, including the
conclusion, has been prepared for and only for the company for the purpose of
complying with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority and for no other purpose. We
do not, in giving this conclusion, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into
whose hands it may come save where expressly agreed by our prior consent in
writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
16 April 2025
WH Smith PLC
Glossary (unaudited)
Alternative Performance Measures
In reporting financial information, the Group presents alternative performance
measures, "APMs", which are not defined or specified under the requirements of
IFRS.
The Group believes that these APMs, which are not considered to be a
substitute for or superior to IFRS measures, provide stakeholders with
additional useful information on the underlying trends, performance and
position of the Group and are consistent with how business performance is
measured internally. The alternative performance measures are not defined by
IFRS and therefore may not be directly comparable with other companies'
alternative performance measures.
Non-underlying items
The Group has chosen to present a measure of profit and earnings per share
which excludes certain items, that are considered non-underlying and are not
considered to be part of the normal operations of the Group. The Group
believes that the separate disclosure of these items provides additional
useful information to users of the financial statements to enable a better
understanding of the Group's underlying financial performance.
The Group exercises judgement in determining whether income or expenses are
reported as non-underlying. This assessment includes consideration of the
size, nature or cause of occurrence of the item, as well as consistency with
prior periods. Non-underlying items can include, but are not limited to,
restructuring and transformation costs linked to Board agreed programmes,
costs relating to M&A activity, impairment charges and other property
costs, significant items relating to pension schemes, amortisation of
intangible assets acquired in business combinations, and the related tax
effect of these items. Reversals associated with items previously reported as
non-underlying, such as reversals of impairments and releases of provisions or
liabilities are also reported in non-underlying items.
Items recognised in Other comprehensive income/loss may also be identified as
non-underlying for the purposes of narrative explanation of the Group's
performance, where the Group has determined that they are associated with the
above categories and are judged to have met the Group's definition of
non-underlying.
IFRS 16
The Group adopted IFRS 16 in the year ended 31 August 2020. IFRS 16 superseded
the lease guidance under IAS 17 and the related interpretations. IFRS 16 sets
out the principles for the recognition, measurement, presentation and
disclosure of leases and requires lessees to account for all leases under a
single on-balance sheet model as the distinction between operating and finance
leases is removed. The only exceptions are short-term and low-value leases. At
the commencement date of a lease, a lessee will recognise a lease liability
for the future lease payments and an asset (right-of-use asset) representing
the right to use the underlying asset during the lease term. Lessees are
required to separately recognise the interest expense on the lease liability
and the depreciation expense on the right-of-use asset.
Management has chosen to exclude the effects of IFRS 16 for the purposes of
narrative commentary on the Group's performance and financial position in the
Strategic report. The effect of IFRS 16 on the Group income statement is to
frontload total lease expenses, being higher at the beginning of a lease
contract, and lower towards the end of a contract, and this is further
influenced by timing of renewals and contract wins, and lengths of contracts.
As a result of these complexities, IFRS 16 measures of profit and EBITDA (used
as a proxy for cash generation) do not provide meaningful KPIs or measures for
the purposes of assessing performance, concession quality or for trend
analysis, therefore management continues to use pre-IFRS 16 measures
internally.
The impact of the implementation of IFRS 16 on the Income statement and
Segmental information is provided in Notes A1 and A2 below. There is no impact
on cash flows, although the classification of cash flows has changed, with an
increase in net cash flows from operating activities being offset by a
decrease in net cash flows from financing activities, as set out in Note A9
below. The balance sheet as at 28 February 2025 both including and excluding
the impact of IFRS 16 is shown in Note A10 below.
Leases policies applicable prior to 1 September 2019
Leases are classified as finance leases whenever the terms of the lease
transfer substantially all the risks and rewards of ownership to the lessee.
All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets of the Group at
their fair value determined at the inception of the lease or, if lower, at the
present value of the minimum lease payments. The corresponding liability to
the lessor is included in the balance sheet as a finance lease obligation.
These assets are depreciated over their expected useful lives on the same
basis as owned assets or, where shorter, over the term of the relevant lease.
Lease payments are apportioned between finance charges and a reduction of the
lease obligations so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are recognised directly in
the income statement.
WH Smith PLC
Leases policies applicable prior to 1 September 2019 (continued)
Rentals payable and receivable under operating leases are charged to the
income statement on a straight-line basis over the term of the relevant lease.
Benefits received and receivable as an incentive to enter into an operating
lease are also spread on a straight-line basis over the lease term. The Group
has a number of lease arrangements in which the rent payable is contingent on
revenue. Contingent rentals payable, based on store revenues, are accrued in
line with revenues generated.
Definitions and reconciliations
In line with the Guidelines on Alternative Performance Measures issued by the
European Securities and Markets Authority ('ESMA'), we have provided
additional information on the APMs used by the Group below, including full
reconciliations back to the closest equivalent statutory measure.
APM Closest equivalent IFRS measure Reconciling items to IFRS measure Definition and purpose
Income Statement Measures
Headline measures Various See Notes A1-A10 and Note A12 Headline measures exclude the impact of IFRS 16 (applying the principles of
IAS 17). Reconciliations of all Headline measures are provided in Notes A1 to
A10 and Note A12.
Group profit before tax and non-underlying items Group profit before tax See Group income statement and Note A1 Group profit before tax and non-underlying items excludes the impact of
non-underlying items as described below. A reconciliation from Group profit
before tax and non-underlying items to Group profit before tax is provided on
the Group income statement on page 20, and on a Headline (pre-IFRS 16) basis
in Note A1.
Group profit from trading operations and segment trading profit Group operating profit See Note 2 and Note A2 Group profit from trading operations and segment trading profit are stated
after directly attributable share-based payment and pension service charges
and before non-underlying items, unallocated costs, finance costs and income
tax expense.
A reconciliation from the above measures to Group operating profit and Group
profit before tax on an IFRS 16 basis is provided in Note 2 to the Condensed
Interim Financial Statements and on a Headline (pre-IFRS 16) basis in Note
A2.
Non-underlying items None Refer to definition and see Note 3 and Note A6 Items which are not considered part of the normal operating costs of the
business, are non-recurring and considered exceptional because of their size,
nature or incidence, are treated as non-underlying items and disclosed
separately. The Group believes that the separate disclosure of these items
provides additional useful information to users of the financial statements to
enable a better understanding of the Group's underlying financial performance.
An explanation of the nature of the items identified as non-underlying on an
IFRS 16 basis is provided in Note 3 to the Condensed Interim Financial
Statements, and on a Headline (pre-IFRS 16) basis in Note A6.
Earnings per share before non-underlying items Earnings per share Non-underlying items, see Note 7 and Note A4 Profit for the period attributable to the equity holders of the parent before
non-underlying items divided by the weighted average number of ordinary shares
in issue during the interim period. A reconciliation is provided on an IFRS 16
basis in Note 7 and on a Headline (pre-IFRS 16) basis in Note A4.
Headline EBITDA Group operating profit Refer to definition Headline EBITDA is Headline Group operating profit before non-underlying items
adjusted for pre-IFRS 16 depreciation, amortisation and impairment.
Effective tax rate None Non-underlying items Total income tax charge / credit excluding the tax impact of non-underlying
items divided by Group Headline profit before tax and non-underlying items.
See Note 5 on an IFRS 16 basis, and Notes A3 and A6 on a pre-IFRS 16 basis.
Fixed charges cover None Refer to definition This performance measure calculates the number of times Headline Profit before
tax covers the total fixed charges included in calculating profit or loss.
Fixed charges included in this measure are net finance charges (excluding
finance charges from IFRS 16 leases) and net operating lease rentals stated on
a pre-IFRS 16 basis. The calculation of this measure is outlined in Note A5.
Gross Gross profit margin Not applicable Where referred to throughout the Condensed Interim Financial Statements, gross
margin is calculated as gross profit divided by revenue.
margin
Like-for-like revenue Movement in revenue per the income statement - Revenue change from non like-for-like stores Like-for-like revenue is the change in revenue from stores that have been open
for at least a year, with a similar selling space at a constant foreign
- Foreign exchange impact exchange rate. See A11.
WH Smith PLC
Glossary (unaudited)
APM Closest equivalent IFRS measure Reconciling items to IFRS measure Definition and purpose
Balance Sheet Measures
Headline net debt Net debt Reconciliation of net debt Headline net debt is defined as cash and cash equivalents, less bank
overdrafts and other borrowings and both current and non-current obligations
under finance leases as defined on a pre-IFRS 16 basis. Lease liabilities
recognised as a result of IFRS 16 are excluded from this measure. A
reconciliation of Net debt on an IFRS 16 basis provided in Note A8.
Other measures
Free cash flow Net cash inflow from operating activities See Note A7 and Group Overview Free cash flow is defined as the net cash inflow from operating activities
before the cash flow effect of IFRS 16, non-underlying items and pension
funding, less net capital expenditure. The components of free cash flow are
shown in Note A7 and on page 16, as part of the Group Overview.
Operating cash flow Net cash inflow from operating activities See Group Overview Operating cash flow is defined as Headline profit before tax and
non-underlying items, excluding Headline depreciation, amortisation,
impairment and other non-cash items. The components of Operating cash flow are
shown on page 16, as part of the Group Overview.
Return on capital employed (ROCE) None Not applicable Return on Capital Employed is calculated as the Headline trading profit as a
percentage of operating capital employed, and is stated on a pre-IFRS 16
basis. Operating capital employed is calculated as the 12-month average net
assets, excluding net debt, retirement benefit obligations and net current and
deferred tax balances.
Leverage None Not applicable Leverage is calculated as Headline net debt divided by rolling 12 month
Headline EBITDA before non-cash items (on a pre-IFRS 16 basis).
A1. Reconciliation of Headline to Statutory Group operating profit and Group
profit before tax
6 months to 28 Feb 2025
pre-IFRS 16 Basis IFRS 16 Basis
£m Headline, before non-underlying items Headline non-underlying items Headline IFRS 16 adjustments IFRS 16 adjustments non-underlying items Total
Revenue 951 - 951 - - 951
Cost of sales (367) - (367) - - (367)
Gross profit 584 - 584 - - 584
Distribution costs (431) - (431) 9 - (422)
Administrative expenses (96) - (96) 2 - (94)
Other income - - - 1 - 1
Non-underlying items - (70) (70) - (16) (86)
Group operating profit / (loss) 57 (70) (13) 12 (16) (17)
Finance costs (12) - (12) (13) - (25)
Profit / (loss) before tax 45 (70) (25) (1) (16) (42)
Income tax (charge) / credit (11) 8 (3) - 5 2
Profit / (loss) for the period 34 (62) (28) (1) (11) (40)
Attributable to:
Equity holders of the parent 31 (62) (31) (1) (11) (43)
Non-controlling interests 3 - 3 - - 3
34 (62) (28) (1) (11) (40)
WH Smith PLC
Glossary (unaudited)
A1. Reconciliation of Headline to Statutory Group operating profit and Group
profit before tax (cont'd)
6 months to 29 Feb 2024
pre-IFRS 16 basis IFRS 16 Basis
£m Headline, before non-underlying items Headline non-underlying items Headline IFRS 16 adjustments IFRS 16 adjustments non-underlying items Total
Revenue 926 - 926 - - 926
Cost of sales (370) - (370) - - (370)
Gross profit 556 - 556 - - 556
Distribution costs (398) - (398) 8 - (390)
Administrative expenses (99) - (99) - - (99)
Other income - - - 1 - 1
Non-underlying items - (13) (13) - (3) (16)
Group operating profit 59 (13) 46 9 (3) 52
Finance costs (13) (1) (14) (11) 1 (24)
Profit before tax 46 (14) 32 (2) (2) 28
Income tax (charge) / credit (11) 2 (9) - 1 (8)
Profit for the period 35 (12) 23 (2) (1) 20
Attributable to:
Equity holders of the parent 32 (12) 20 (2) (1) 17
Non-controlling interests 3 - 3 - - 3
35 (12) 23 (2) (1) 20
A2. Reconciliation of Headline to Statutory Segmental trading profit/(loss)
and Group profit from trading operations
6 months to 28 Feb 2025
pre-IFRS 16 basis IFRS 16 basis
£m Headline, before non-underlying items Headline non-underlying items Headline IFRS 16 adjustments Total
Travel UK trading profit 40 - 40 - 40
North America trading profit 15 - 15 3 18
Rest of the World trading profit 1 - 1 4 5
Total Travel trading profit 56 - 56 7 63
High Street trading profit 15 - 15 5 20
Group profit from trading operations 71 - 71 12 83
Unallocated central costs (14) - (14) - (14)
Group operating profit before non-underlying items 57 - 57 12 69
Non-underlying items - (70) (70) (16) (86)
Group operating profit / (loss) 57 (70) (13) (4) (17)
WH Smith PLC
Glossary (unaudited)
A2. Reconciliation of Headline to Statutory Segmental trading profit/(loss)
and Group profit from trading operations (cont'd)
6 months to 29 Feb 2024
pre-IFRS 16 basis IFRS 16 basis
£m Headline, before non-underlying items Headline non-underlying items Headline IFRS 16 adjustments Total
Travel UK trading profit 37 - 37 2 39
North America trading profit 14 - 14 - 14
Rest of the World trading (loss) / profit (1) - (1) 2 1
Total Travel trading profit 50 - 50 4 54
High Street trading profit 22 - 22 5 27
Group profit from trading operations 72 - 72 9 81
Unallocated central costs (13) - (13) - (13)
Group operating profit before non-underlying items 59 - 59 9 68
Non-underlying items - (13) (13) (3) (16)
Group operating profit 59 (13) 46 6 52
WH Smith PLC
Glossary (unaudited)
A3. Reconciliation of Headline to Statutory tax expense / (credit)
6 months to 6 months to
28 Feb 2025 29 Feb 2024
£m Headline (pre-IFRS 16) IFRS 16 Total Headline (pre-IFRS 16) IFRS 16 adjustments Total
adjustments
Profit before tax and non-underlying items 45 (1) 44 46 (2) 44
Tax on profit 9 - 9 5 - 5
Adjustment in respect of prior periods - - - - - -
Total current tax expense 9 - 9 5 - 5
Deferred tax - current period 2 - 2 6 - 6
Deferred tax - prior period - - - - - -
Tax expense on profit before non-underlying items 11 - 11 11 - 11
Tax on non-underlying items (8) (5) (13) (2) (1) (3)
Total tax (credit)/expense on profit 3 (5) (2) 9 (1) 8
A4. Calculation of Headline and Statutory (loss) / earnings per share
6 months to 6 months to
28 Feb 2025
29 Feb 2024
millions Basic EPS Diluted EPS Basic EPS Diluted EPS
Weighted average number of shares in issue 128 130 129 131
6 months to 6 months to
28 Feb 2025 29 Feb 2024
Profit for the period attributable to equity holders of the parent Basic EPS Diluted EPS Profit for the period attributable to equity holders of the parent Basic EPS Diluted EPS
£m pence pence £m pence pence
Headline (pre-IFRS-16 basis)
- Before non-underlying items 31 24.2 23.8 32 24.8 24.4
- Non-underlying items (after tax) (62) (48.4) (47.7) (12) (9.3) (9.2)
- Impact of antidilutive potential shares - - (0.3) - - -
Total (31) (24.2) (24.2) 20 15.5 15.2
IFRS 16 adjustments
- Before non-underlying items (1) (0.8) (0.7) (2) (1.5) (1.5)
- Non-underlying items (11) (8.6) (8.5) (1) (0.8) (0.7)
- Impact of antidilutive potential shares - - (0.2) - - -
Total (12) (9.4) (9.4) (3) (2.3) (2.2)
IFRS 16 basis
- Before non-underlying items 30 23.4 23.1 30 23.3 22.9
- Non-underlying items (after tax) (73) (57.0) (56.2) (13) (10.1) (9.9)
- Impact of antidilutive potential shares - - (0.5) - - -
Total (43) (33.6) (33.6) 17 13.2 13.0
WH Smith PLC
Glossary (unaudited)
A5. Fixed charges cover
£m 6 months to 6 months to
28 Feb 2025 29 Feb 2024
Net finance costs (pre-IFRS 16) 12 13
Net operating lease rentals (pre-IFRS 16) 181 168
Total fixed charges 193 181
Headline profit before tax and non-underlying items 45 46
Headline profit before tax, non-underlying items and fixed charges 238 227
Fixed charges cover - times 1.2x 1.3x
A6. Non-underlying items on pre-IFRS 16 and IFRS 16 bases
6 months to 6 months to
29 Feb 2024
28 Feb 2025
£m Headline (pre-IFRS 16) IFRS 16 Headline IFRS 16
(pre-IFRS 16)
Amortisation of acquired intangible assets 2 2 2 2
Transformation programmes - IT 5 5 1 1
Transformation programmes - operational efficiencies 7 7 - -
Provisions for onerous contracts 3 1 2 2
Costs associated with pensions - - 1 1
Impairment of assets
- goodwill associated with High Street 15 15 - -
- property, plant and equipment and intangible assets 22 22 6 6
- right-of-use assets - 18 - 3
Transformation programmes - High Street portfolio 8 8 - -
Transformation programmes - supply chain 2 2 1 1
Costs relating to M&A activity and Group legal entity structure 6 6 - -
Non-underlying items, included in operating profit 70 86 13 16
Finance costs associated with onerous contracts - - 1 -
Non-underlying items, before tax 70 86 14 16
Tax credit on non-underlying items (8) (13) (2) (3)
Non-underlying items, after tax 62 73 12 13
A description of non-underlying items on an IFRS 16 basis is provided in Note
3 to the financial statements.
Pre-IFRS 16 non-underlying items are calculated on a consistent basis to IFRS
16 non-underlying items, except as follows:
- Impairment of right-of-use assets, which are not recognised on a
pre-IFRS 16 basis.
- Finance costs of £nil (2024: £1m) have been recorded in
non-underlying items in relation to the unwind of the discount on onerous
lease provisions that are not recognised under IFRS 16.
A tax credit of £13m (2024: £3m) has been recognised in relation to the
above items (£8m pre-IFRS 16 (2024: £2m)).
WH Smith PLC
Glossary (unaudited)
A7. Free cash flow
£m Note 6 months to 6 months to
28 Feb 2025 29 Feb 2024
Cash generated from operating activities 10 122 90
Interest paid (19) (19)
Income taxes paid (17) (9)
Net cash inflow from operating activities 86 62
Impact of IFRS 16 (Note A9) (60) (58)
Add back:
- Cash impact of non-underlying items 25 6
- Receipt of retirement benefit surplus (75) -
- Non-cash items 6 (1)
Deduct:
- Purchase of property, plant and equipment (48) (58)
- Purchase of intangible assets (3) (7)
Free cash flow (69) (56)
A8. Headline Net debt
£m Note At At At
28 Feb 2025
29 Feb 2024 31 Aug 2024
Borrowings
- Revolving credit facility (178) (176) (117)
- Convertible bonds 9 (315) (305) (310)
- Bank loans - - -
- Lease liabilities 9 (601) (602) (626)
Liabilities from financing activities (1,094) (1,083) (1,053)
Cash and cash equivalents 39 44 56
Net debt (IFRS 16) 9 (1,055) (1,039) (997)
- Add back lease liabilities recognised under IFRS 16(1) 601 602 626
Net debt (pre-IFRS 16) (454) (437) (371)
(1) Excludes lease liabilities previously recognised as finance leases on a
pre-IFRS 16 basis.
WH Smith PLC
Glossary (unaudited)
A9. Cash flow disclosure impact of IFRS 16
There is no impact on cash flows, although the classification of cash flows
has changed, with an increase in net cash inflows from operating activities
being offset by a decrease in net cash inflows from financing activities.
6 months to 28 Feb 2025 6 months to 29 Feb 2024
£m Headline (pre-IFRS 16) IFRS 16 Headline (pre-IFRS 16) IFRS 16
IFRS 16 Adjustment IFRS 16 Adjustment
Net cash inflow/(outflow) from operating activities 26 60 86 4 58 62
Net cash outflow from investing activities (48) - (48) (65) - (65)
Net cash inflow/(outflow) from financing activities 5 (60) (55) 49 (58) (9)
Net decrease in cash in the period (17) - (17) (12) - (12)
A10. Balance sheet impact of IFRS 16
The balance sheet as at 28 February 2025 including and excluding the impact of
IFRS 16 is shown below:
At 28 Feb 2025 At 29 Feb 2024
Headline (pre-IFRS 16) IFRS 16 Headline (pre-IFRS 16) IFRS 16
IFRS 16 Adjustment IFRS 16 Adjustment
£m
Goodwill and other intangible assets 490 (2) 488 506 (1) 505
Property, plant and equipment 313 8 321 288 7 295
Right-of-use assets - 467 467 - 484 484
Investments in joint ventures 2 - 2 2 - 2
805 473 1,278 796 490 1,286
Inventories 225 - 225 207 - 207
Payables less receivables (92) (13) (105) (142) (9) (151)
Working capital 133 (13) 120 65 (9) 56
Derivative financial asset - - - - - -
Net current and deferred tax asset 54 - 54 47 - 47
Provisions (30) 13 (17) (26) 8 (18)
Operating assets employed 962 473 1,435 882 489 1,371
Net debt (454) (601) (1,055) (437) (602) (1,039)
Total net assets 508 (128) 380 445 (113) 332
A11. Like-for-like revenue reconciliation
The reconciling items between like-for-like revenue change and total revenue
change are shown below:
£m Travel UK Rest of the World Travel Total Group
North America High Street
Like-for-like revenue change 7% 3% 9% 6% (3)% 3%
Net space change impact -% 2% 6% 2% (4)% 1%
Foreign exchange -% (2)% (4)% (2)% -% (1)%
Total revenue change 7% 3% 11% 6% (7)% 3%
WH Smith PLC
Glossary (unaudited)
A12. Operating lease expense
Amounts recognised in Headline Group operating profit on a pre-IFRS 16 basis
are as follows:
£m 6 months to 28 Feb 2025 6 months to 29 Feb 2024
Net operating lease charges 181 168
For the year ended 31 August 2020, the Group adopted IFRS 16. IFRS 16 requires
lessees to account for all leases under a single on-balance sheet model as the
distinction between operating and finance leases is removed. In order to
provide comparable information, the Group has chosen to present Headline
measures of operating profit and profit before tax, as explained in Note 2
Segmental analysis.
The table above presents the pre-IFRS 16 net operating lease charges, applying
the principles of IAS 17, and Group accounting policies as applicable prior to
1 September 2019, as described in the Glossary on page 43.
The Group leases various properties under non-cancellable operating lease
agreements. The leases have varying terms, escalation clauses and renewal
rights. The Group has a number of lease arrangements in which the rent payable
is contingent on revenue. Contingent rentals payable, based on store revenues,
are accrued in line with revenues generated.
The average remaining lease length across the Group is four years (February
2024: four years).
Rentals payable and receivable under operating leases are charged to the
income statement on a straight-line basis over the term of the relevant lease.
Benefits received and receivable as an incentive to enter into an operating
lease are also spread on a straight-line basis over the lease term.
A13. Analysis of retail stores and selling space
Number of High Street stores(1)
1 Sep 2024 Opened Closed 28 Feb 2025
Total 500 - (18) 482
Number of Travel units
A Travel store may consist of multiple units within one location. On an
individual unit basis, Travel stores can be analysed as follows:
1 Sep 2024 Opened Closed 28 Feb 2025
Non franchise units 847 13 (18) 842
Joint Venture and Franchise units(1) 444 17 (25) 436
Total 1,291 30 (43) 1,278
(1) Travel units include motorway and international franchise units, and
exclude kiosks in India, and Supanews and Wild Cards and Gifts franchisees in
Australia.
Retail selling square feet ('000s)
1 Sep 2024 Opened Closed 28 Feb 2025
High Street 2,424 - (88) 2,336
Travel 1,202 33 (32) 1,203
Total 3,626 33 (120) 3,539
Total Retail selling square feet does not include franchise units.
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