WH Smith reports rising profits across its shops at airports and railway stations

Chief executive Carl Cowling said the group is “well-positioned for the peak summer trading period”.

He added: “We are mindful of the increased level of geopolitical and economic uncertainty; however, given the resilient nature of our business, we are well-positioned to benefit from the growth opportunities in global travel retail.”

The high street giant announced last month that it is selling its non-travel stores to Hobbycraft owner Modella Capital in a deal valuing it at £76m. It means the WH Smith name will disappear from high streets and be replaced by a new brand, TGJones.

The move comes after years of declining high street profits, while WH Smith’s travel division has grown to make up the bulk of its sales and profits, with more than 1,200 stores across 32 countries.

The travel division saw revenue grow 6 per cent over the first half of its financial year, marking a slight slowdown from the 7 per cent growth in the first quarter.

WH Smith said it expects to grow rapidly across airports and stations over the coming years, with a particular focus on North America. It pointed to planned stores in the US cities of Albuquerque, Dallas and Portland, as part of a 26-strong group of stores coming soon across its North American estate.

It said: “Passenger numbers are forecast to double over the next two decades, driven by population and economic growth.

“We are also seeing significant investment in airport infrastructure, creating an improved retail offer for travellers.

“In addition, as landlords look to consolidate formats in travel retail, we are in a strong position to execute and further roll out our one-stop-shop format.”

Commenting on the update, Richard Hunter, Head of Markets at interactive investor, said: “The group has retained the brand but shaken off an underperforming unit, leaving a clear path for renewed focus.

“The recently announced sale of the high street business is strategically sound and establishes a clear direction of travel for the remaining units.

"The unit had been something of a drag on the group more recently, with store closures, margin pressures and faltering progress in sharp contrast to the Travel business.

"Given the general pressure on the high street, let alone the question marks over UK consumers’ propensity to spend this year, the potential exit of the high street business could have come just at the right time.”

Mr Hunter added: “The potential in North America is substantial in the group’s view, where passenger numbers are forecast to grow in air travel 2.5 times before 2050, and where the group is observing more opportunities for airport retailing.

"The store opening programme continues apace, with around 70 stores due to open in the region, which suggests that the group has every intention of bolstering its presence in this market.”