WH Smith anticipates lower profitability for 2022
Prior to its preliminary results for the year ending 31 August 2021, the retailer revealed that total revenue for its high street business in the second half of the year was at 85% compared with 2019 pre-pandemic levels
WH Smith has anticipated that the levels of profitability for the year ending August 2022 will
be at the lower end of market expectations as a result of the ongoing effects of Covid-19.
Prior to its preliminary results for the year ending 31 August 2021, the retailer revealed that total revenue in the second half of the year for its high street business was at 85% compared with 2019 pre-pandemic levels.
For the group’s travel business, passenger numbers remained significantly low compared with 2019 levels, however the retailer said it has continued to see a “gradual recovery” in sales as restrictions eased throughout July and August.
As at 28 August 2021, the group said it remains in a strong position in relation to liquidity and cash management with cash on deposit of £107m and a further £250m Revolving Credit Facility which remains undrawn.
In addition to the previously announced 18 InMotion stores in UK airports, the group won a further four technology and accessories stores across Edinburgh, Glasgow and Aberdeen airports.
These stores will also trade under the InMotion brand, taking the total number of technology and accessories stores in operation across UK airports to 22. The stores are expected to open over the course of the first half of the 2021/22 financial year.
