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WH Smith PLC on Monday said it has completed the sale of its high street business to Modella Capital Ltd but for a lower price than initially agreed. In response, shares in the Swindon-based retail chain fell 5.0% at 1,072.70 pence each in London on Monday morning. WH Smith now expects to receive gross cash proceeds of up to £40 million compared to £52 million previously expected. This comprises £10 million expected in financial 2025, up to £20 million in financial 2026, and £10 million of deferred tax assets delivered as it becomes payable. Transaction and separation costs remain unchanged at £27 million. WH Smith said the future of the high street business under a change of ownership has led to a more ‘cautious outlook’. This, combined with a period of softer trading, has resulted in a reduction in the ongoing cash flow of the business. Consequently, Modella recently sought amendments to the deal, WH Smith said. It expects net debt as at August 31 to be around £425 million, up from £371 million a year prior. WH Smith said the Travel divisions continue to trade in line with market expectations entering the peak summer trading period. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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