Travel business helps WH Smith weather the storm

The group’s sales dropped four per cent to £686m in the six months to February 28, but with the help of tight cost controls and a focus on margin improvement it still posted a three per cent rise in profits to £64m.

The travel business, which operates from 532 outlets at airports, train stations and motorway service areas, increased operating profits by nine per cent to £25m, even though like-for-like sales fell three per cent in the face of softer passenger numbers and disruption to air and rail services before Christmas.

WH Smith said its high street estate delivered a resilient performance after profits remained at £47m for the half-year period. Sales at the 581 store division were down six per cent on a like-for-like basis.

The company said the book market continued to be difficult, but that efforts to build its reputation as a popular books specialist had paid off with market share gains in key Christmas releases. Successful titles for the chain included Guinness World Records and Jamie’s 30 Minute Meals.

Stationery sales were down two per cent on a like-for-like basis, while news and impulse purchases fell four per cent amid a particularly challenging magazines market.

Chief executive Kate Swann said: “We have delivered a good performance across the group, despite a difficult consumer environment.”

The retailer’s profits performance has benefited from its move in recent years to rebalance the mix of its business away from DVD and CDs towards higher-margin categories such as stationery and books.

QualitySolicitors, a group of independent solicitors firms, has signed a deal with WH Smith to provide access to legal services in branches.

The deal means that QualitySolicitors will be present in 150 branches this summer and is set to increase to 500 nationwide.

A QualitySolicitors client representative will book appointments online and provide quotes for conveyancing, wills and fixed-fee advice sessions.

Richard Allen, managing partner of QualitySolicitors Lockings based in Hull, Beverley and Hedon says: “The law profession undergoes a momentous change in October 2011, with the introduction of the so-called ‘supermarket law’.

“QualitySolicitors have been preparing for the changes for some time and this deal with WH Smith represents a revolution in the delivery of legal services.”