WH Smith's results to be at top end

23rd Aug 2012 08:09

Newsagent chain WH Smith expects results for the year to the end of August will be at the top end of market expectations as the group's Travel business improves margins.The group's Travel business, which has branches in transport hubs such as airports, coach stations and railway stations, is chugging along nicely despite the current economic climate. The Travel division's UK store opening programme remains on track, while management continues to manage costs tightly, delivering strong gross margin gains driven by good mix management. "Travel continues to make good progress in winning new business in its international channel," the company said.Things have been trickier of late in the High Street business, but again the group trumpeted its focus on gross margin and tight cost control. In addition, the High Street division has seen an improvement in the sales trend of books following the recent positive publishing schedule. In fact, the Board is so confident of the company´s prospects that it has decided to instigate a further share repurchase programme of up to £50m for the financial year to 31 August 2013.JH