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We've seen most of the Christmas trading news from the high street now, and it's been pretty mixed and largely disappointing for those who might have hoped we'd see the start of an upturn.

Of the few left, we'll hear from WH Smith on Wednesday. With nearly two thirds of its turnover coming from its high-street business (the rest is in its travel division), we might expect things to be tough, but prospects for WH Smith are looking pretty decent at the moment.

At 534p, the shares are on a prospective price-to-earnings ratio (P/E) for the year to August 2012 of a modest 9, and analysts are forecasting a dividend of 4.8%. And, after steadily rising earnings and dividends over the past few years, this update will be well worth looking out for.

25 January 2012

WH SMITH PLC

TRADING STATEMENT

Resilient performance across the Group with profit growth in line with expectations

WH Smith PLC is today providing an update on its trading performance for the 21 weeks to 21 January 2012.

The Group delivered a resilient performance with profit in line with expectations. Group total sales were down 3% with like-for-like (LFL) sales down 5% for the 21 weeks.

In Travel, total sales were up 2% with LFL sales down 3% for the 21 weeks and we saw further improvement in gross margin, in line with plan. Our new store opening programme remains on track and we continue to identify further opportunities for growth both in the UK and internationally.

In High Street, total sales were down 5% with LFL sales down 6% for the 21 weeks. Excluding Entertainment, LFL sales were down 4%. Gross margin improved in the period in line with plan and costs were tightly managed, reflecting the trading conditions.

The Group continues to be highly cash generative with a strong balance sheet. Further to our announcement on 31 August 2011 of our intention to return up to GBP50m of cash to shareholders via an on market rolling share buyback programme, as of 24 January 2012, we have purchased 2.7 million shares to date at an average price of GBP5.15.

Commenting on today's announcement, Kate Swann, Group Chief Executive said:

"During the period we saw a resilient performance in challenging trading conditions. Gross margin was in line with plan and costs were tightly controlled.

"Over the past six years both businesses have consistently increased profits and the Group is now well balanced between Travel and High Street. As a result of this, the months of November and December now represent less than half of annual Group profit compared to over 90% of Group profit six years ago.

"Looking ahead, we expect the trading environment to be challenging however we have planned accordingly and continue to be confident in making further progress in the year."

- ENDS -

Trading Statement well received.

UBS reiterates its Buy TP 580.00p

And from yesterday.

Prime Markets reiterates its Buy TP 568.00p

Seymour Pierce reiterates its Buy Tp 620.00p

Peel Hunt reiterates its Hold TP 525.00p

Panmure Gordon reiterates its Hold TP 584.00p

WH Smith slips as boss sells shares

Books-to-stationery retailer WH Smith was on the wane, slipping 22 to 537p, after it emerged that its chief executive had sold shares worth more than £2m.

Kate Swann sold 425,000 shares at 550.74p each on February 1, but with a stake of 0.47pc she remains the largest individual shareholder in the chain of which she has been chief executive since 2003.

Last week, the chain said that its strategy of improving profit margins and cutting costs, rather than pushing sales, was working as it posted a 5pc dip in festive sales. Investec (Frankfurt: A0J32R - news) analysts said at the time that they liked Smiths for its “more defensive qualities, cash generation” and its travel business’s growth potential.

It is thought that Ms Swann is using the proceeds of the share sale to buy property.

..

Interim Management Statement.

WH Smith PLC is today publishing its Interim Management Statement as required by the UK Listing Authority's Disclosure and Transparency rules, relating to the 15 week period from 26 February 2012 to 9 June 2012.

CURRENT TRADING

Total Group sales in the first 15 weeks of the second half of the financial year were down 1% with like-for-like sales down 3% compared to the same period last year.

WHSmith Travel total sales were up 1% and like for like sales were down 3% in the period, with gross margin up and tight cost control. Our new store opening programme continues to progress well.

WHSmith High Street total sales were down 3% and like-for-like sales were down 4% in the period. Gross margins continue to grow and cost savings have been delivered in line with plan.

FINANCIAL POSITION

We confirm that our financial position is in line with market expectations and our balance sheet remains strong. We continue to generate high levels of cash from our operations. As of 13 June 2012, we have purchased 6.8m shares and returned to shareholders £36m of the £50m share buyback announced in August 2011.

PROSPECTS

The economic environment remains uncertain and whilst we continue to be cautious about consumer spending, we remain confident in the outcome for the full year.


- ENDS -

Despite a fall in sales over the last 15 weeks, books-to-stationery chain WH Smith added 12.9 to 484.6p. Analysts at Numis lifted their rating to “buy” from “add”, saying that it expected Smiths which has returned £361m of cash to shareholders over the past five years to make further share buy-backs in future.

Numis upgrades WH Smith from add to buy, target price unchanged at 584p

..Shares in WH Smith hit new highs

By Ben Martin | Telegraph – 36 minutes ago

Investors have chased the newsagent higher, but broker Seymour Pierce thinks they have further to go.

Despite touching new highs, shares in high-street stalwart WH Smith (Other OTC: WHTPF.PK - news) may still have further to go.

The newsagent climbed 2 to 574p, the highest level since the company de-merged its retail and news distribution businesses in 2006. Seymour Pierce analysts Kate Calvert and Freddie George said today they think there’s more to come from the company, which has held up well in the tough economic environment.

“We view WH Smith as a core holding and believe the market is undervaluing this highly cash generative business,” they wrote in a note to clients. The group “is one of the few retailers in our universe to have grown profits through the current downturn.”

The analysts also noted that over the past five years, the retailer has returned more than half its market value back to shareholders. They recommend investors buy the shares, and raised their target price to 670p from 570p.

Market Watch: WH Smith sales take off as travel branches drive growth By SCOTT REID
Published on Sunday 19 August 2012 00:00


HIGH street stalwart WH Smith is expected to reveal improved like-for-like sales as it continues with its strategy to expand its UK travel arm and international division.


The travel business, which features stores at airports, railway stations and motorway service areas, has helped offset declines in the under-pressure high street outlets in recent months.

The travel arm now makes up 50 per cent of the group’s pre-tax profits and analysts expect it to continue being the key driver for growth, supported by its plans to expand internationally.

Seymour Pierce analyst Kate Calvert said: “The business model is becoming increasingly more flexible as travel accounts for a greater proportion of group underlying earnings and its high street position is benefiting from market consolidation.”

The group is also expected to give an update on the success of the Kobo e-reader, which it introduced to stores this year to compete with Amazon’s Kindle.

Pre close Trading Update

Tight cost control boosts WH Smith
StockMarketWire.com
Major retailer, WH Smith, expects its results for the year to 31 August 2012 to be at the top end of market expectations.

Its Travel business continues its good performance despite the current economic climate and its UK store opening programme remains on track. It continues to manage costs tightly and have delivered strong gross margin gains driven by good mix management. Travel continues to make good progress in winning new business in its international channel.

In the High Street business the focus is on gross margin and tight cost control continues to deliver a good performance. In addition, High Street has seen an improvement in the sales trend of books following the recent positive publishing schedule. Both businesses remain highly cash generative.

WH Smith boosted by 'Fifty Shades' novels


http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9494920/WH-Smith-boosted-by-Fifty-Shades-novels.html#

Sold my smiths holding

Preliminary Results

KEY POINTS

· Total Group profit before tax up 10% to £102m (2011: £93m)

· Group profit from trading operations[1] up 7% to £117m (2011: £109m)

o Good performance from Travel with trading profit1 up 11% to £63m (2011: £57m)

o Resilient performance from High Street with trading profit1 up 4% to £54m (2011: £52m)

· Earnings per share[2] up 22% to 62.7p (2011: 51.4p)

· Final dividend proposed of 18.6p, up 22% on the prior year; giving a total ordinary dividend per share of 26.9p, a 20% increase on the prior year

· Strong balance sheet and cash generation

o Strong free cash flow[3] of £91m

o Net cash of £36m as at 31 August 2012

o Completed £50m share buyback programme and a further £50m return of cash via share buyback programme announced in August

o Actuarial pension deficit of £75m following the agreement of the 2012 triennial valuation, compared to a deficit of £113m three years ago

· Group total sales down 2% with like-for-like (LFL) sales down 5%:

o Travel total sales up 2% with LFL sales down 3%

o High Street total sales down 5% with LFL sales down 5%, in line with our strategic plan

· Gross margin improved by 140 basis points

· Further good progress in Travel's growing international channel with 101 units now open or won

· Additional £12m of cost savings announced today, giving total target savings of £25m over the next three years

Interim Results

Strong performance across the Group with EPS up 11% and interim dividend up 13%


KEY POINTS

· Total Group profit before tax up 5% to £69m (2012: £66m)

· Group profit from trading operations[1] up 4% to £77m (2012: £74m)
o Strong performance from Travel with trading profit1 up 7% to £29m (2012: £27m)
o Further growth from High Street with trading profit1 up 2% to £48m (2012: £47m)

· Earnings per share[2] up 11% to 44.2p (2012: 40.0p)

· Interim dividend of 9.4p, up 13% on the prior year

· Good progress with return of cash to shareholders through on market share buyback programme. As at 10 April, we have purchased 4.2m of shares and returned £28m of cash to shareholders

· Strong balance sheet and cash generation
o Strong free cash flow[3] of £58m
o Net cash of £41m as at 28 February 2013

· Group total sales down 4% with like-for-like (LFL) sales down 5%
o Travel total sales flat with LFL sales down 4%
o High Street total sales down 6% with LFL sales down 5%

· Gross margin improved by 160 basis points

· Further progress in Travel's growing international channel with 121 units now open or won, and a further 30 kiosks won in China

· High Street delivered cost savings of £9m in the period, with a further £8m identified for the second half, in line with latest guidance; on track for £17m of cost savings for the full year

Citywire.......

WH Smith to benefit from high street progress
Improvements on the high street and in travel will benefit WH Smith (SMWH.L) according to Investec, which has increased its target price for the stock from £12.00 to £14.00.

Analyst Kate Calvert reiterated Investec’s ‘buy’ recommendation on anticipation of strong first half results for the newsagent and further indication of franchising plans. She said she was also expecting more detail from management on its personalised card business Funkypigeon.com.

‘We expect management to say more on WH Smith newsagent franchising and potentially on Funkypigeon, which could be a hidden gem if the Photobox (owners of Moonpig) valuation being talked about in the press is anything to go by,’ she said.

Calvert expects profits for the first half of the year before tax to fall slightly due to pension commitments with second half profits becoming stronger following ‘steady progress’ from the high street and as travel continues its cyclical recovery

JP Morgan Cazenove retains overweight on WH Smith, target raised from 1310p to 1520p.

RBC comment:
"WH Smith remains one of our Best Ideas in General Retail for exposure to strong global travel trends, active space management, favourable mix impacts on margin and ongoing cost savings and cash returns (additional £50mn share buyback announced today).
Our view: Outperform, 2000p price objective
We favour WH Smith for a) Its strong Travel rollout story b) further High Street gross margin upside, c) its strong cost saving culture, c) its strong track record of cash returns, and d) its rating of 14x CY17E P/E with a 3% dividend yield and £50mn share buyback, we think this makes a strong case for owing the shares and we reiterate our Outperform rating with a £20 price target."

StockMarketWire.com
Book and convenience chain WH Smith said it had agreed to acquire airport retailer InMotion for $198m (£155m), expanding its presence into the US market.

The deal would double the size of WH Smith's international travel business, which it has been growing to offset pressure on the UK high street.

The agreed acquisition price represented an implied multiple of around 9.9 times Ebitda.

'InMotion is a highly successful pure play travel retailer in the world's largest travel retail market,' chief executive Stephen Clarke said.

'The travel retail market in North America for digital accessories offers significant growth potential.'

'In addition, InMotion provides us with a scalable platform to launch the WH Smith airport format into the US, the world's largest travel retail market for news, books and convenience products.'

Also providing a trading update, WH Smith said it had made a 'good' start to the year, with travel revenue up 10% in the first eight weeks, and up 4% on a like-for-like basis.

High street total revenue was down 1%, and down 2% on a like-for-like basis.

Total revenue for the group was up 5%, or 1% on a like-for-like basis.