WH Smith has reported a 5 per cent rise in group revenue to £1,625m for the year to 31 August 2026, while headline profit before tax and non-underlying items fell to £76m, from £108m a year earlier.
The results, published on 12 November, were in line with company guidance. Like-for-like revenue rose 2 per cent. The group reported a statutory loss before tax of £107m, against a £2m profit in 2025. That followed £164m of headline non-underlying charges, including around £103m of impairments and onerous-contract costs, largely in North America.
Key figures
- UK revenue up 4 per cent to £870m, with like-for-like sales up 2 per cent. Hospitals were strongest, up 6 per cent like-for-like; air and rail each grew 1 per cent.
- North America revenue up 9 per cent at constant currency, with like-for-like sales flat.
- Rest of the World and Other revenue up 1 per cent at constant currency, with like-for-like sales up 4 per cent.
- Headline trading profit of £130m, with the margin down to 8 per cent from 10 per cent.
- Free cash flow of £52m, against £63m a year earlier.
- Headline net debt reduced to £325m, from £390m, after a £103m share placing in June.
- No interim or final dividend declared for the year.
- 1,233 stores at the year-end, down from 1,280, after 104 closures and 57 openings.
WH Smith said the fall in profit reflected competitive UK airport contract renewals, inflation and a challenging trading environment. It sold its UK high street business in 2025 and now focuses on travel retail in airports, railway stations and hospitals.
Online stationery retailer CultPens.com performed in line with expectations. The group completed the sale of Cult Pens in early September 2026. Terms were not disclosed.
Executive chair Leo Quinn said the group had begun “a fundamental reset”, supported by the capital raise. It has launched a programme to cut costs, improve cash generation and close loss-making stores. Quinn said capital allocation would follow a “rigorous assessment of returns”.
Like-for-like revenue in the first 10 weeks of the current year was flat. For the 12 months to 31 August 2027, WH Smith expects headline profit before tax and non-underlying items of £75m to £85m, and headline net debt of around £320m. Following the high street sale, it will move its year end from 31 August to 31 December in 2027.
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