WH Smith lifts dividend, confident outlook

10th Apr 2014 07:43

- Lifts dividend, confident outlook- Profit growth in Travel and High Street- Confident of future growthBooks and stationery retailer WH Smith said it would hike its interim dividend payment by 15 per cent as it posted improved profit for the period.Group profit from trading operations increased by 3% on the prior year to £79m while headline pre-tax profit rose to £70m from £68m. Total group sales fell to £613m from £638m previously, while like-for-like (LFL) fell 4%. Headline diluted earnings per share increased by 15% to 47.1p.Travel sales climbed 2% from the year before but fell 1% on a LFL basis, reflecting a recent improvement in UK air passenger numbers. High Street sales declined 7% and dropped 6% on a LFL basis.High Street trading profit rose 2% to £49m amid high levels of cash generation, the group said.Chief Executive Stephen Clarke said: "The group has delivered another strong performance, with profit growth in Travel and High Street, demonstrating the continuing success of our strategy. "The group remains highly cash generative. During the first half we returned £47m to shareholders through the dividend and share buyback announced in October 2013. Looking ahead, we will continue to invest in new opportunities that position us well for future growth."WH Smith declared an interim dividend of 10.8p per share, a 15% increase on last year. "The increase in interim dividend reflects the board's confidence in the future prospects of the group," it said.CJ