WH Smith upbeat despite sluggish high street sales

11th Jun 2014 07:12

- Total sales flat after mixed performance- Strong WH Smith Travel, High Street sales down 4%- Remains confident about full-year outcomeNewsagent and bookseller WH Smith said total group sales in the first 14 weeks of the second half of the financial year were flat with like-for-like (LFL) sales down 2%, compared to the same period last year, but it remains confident about its full-year outcome.At its WH Smith Travel division, total sales climbed 4% while LFL sales were flat in the period, as demand steadily improved. In contrast, WH Smith High Street sales fell 4%, as did LFL sales.It added that new store opening programmes at its travel division, both in the UK and internationally, is progressing well and it saw gross margin improvement.At High Street, gross margins continue to increase and cost savings have been delivered, in line with plan.It also confirmed that its financial position is in line with market expectations and its balance sheet remains strong.The group also announced that it has agreed a new five-year committed revolving credit working capital facility of £93.3m, which will expire in June 2019.Looking ahead, it expects to make progress in both its Travel and High Street businesses and remains confident in the outcome for the full-year.Earlier this week, WH Smith purchased 3.2m shares and returned £33m to shareholders from the £50m share buyback announced in October 2013.CJ