Record year at WH Smith travel division

14th Oct 2010 07:03

Newsagent and bookshop WH Smith posted a strong rise in profits and upped its final dividend by a fifth after a record year from its outlets in railway stations and airports.It also announced a return of up to £50m to shareholders through a rolling share buyback.Pre-tax profits in the year to August jumped by 9% from the previous year to £89m, even as revenues slipped to £1.31bn from £1.34bn. A final dividend of 13.3p is proposed, up 18% on the previous year.The travel division saw a record performance, with operating profit up by 10% to £53m, while operating profit at the High Street division rose by 4% to £51m.Total sales at the travel division were up by 1%, but down by 2% excluding new openings. At High Street stores, total and like-for-like sales were both down by 4%, 'in line with our strategic plan.' WH Smith has been tilting the balance towards the travel division as it seeks to concentrate on margins rather than the top line.'We are a resilient business with a strong and consistent record of both profit growth and cash generation and are well-positioned for continued growth in the future,' said chief executive Kate Swann.