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WH Smith PLC on Wednesday said it has raised £106 million via a placing, subscription and retail offer at 410 pence per share. The Swindon, England-based travel retailer said the issue of 25.8 million shares represents around 20% of its share capital. Retail investors took up 244,000 shares, while directors and management subscribed for 514,631 shares. Leading shareholder Causeway Capital Management LLC agreed to subscribe for around 6.5 million shares, worth £26 million. Proceeds will strengthen the balance sheet, enable continued execution of the company’s growth and transformation agenda, provide greater confidence around its leverage position, and reduce the reliance on debt funding, the firm said. WH Smith had earlier Wednesday announced the fund raise as it lowered full-year profit guidance, once again, amid a downturn in trading. The retailer now expects to deliver headline pretax profit before non-underlying items of between £75 million and £90 million for the financial year ending August 31, down from £108 million in the year prior. It is the second outlook cut in three months. In April, WH Smith reduced guidance to between £90 million and £105 million from £100 million and £115 million previously. In response, shares in WH Smith plunged 16% to 415.20 pence each in London on Wednesday and have fallen 61% in the last year. Last August, the firm was rocked after disclosing an overstatement of around £30 million of expected headline trading profit in North America. This led to the departure of chief executive Carl Cowling in November. On Wednesday, WH Smith said the latest guidance cut reflected the ongoing uncertainty from the Middle East conflict and pressures on gross margins, including the recent deterioration in the North America division. Expectations for the full financial year reflect the ‘observed and anticipated’ decline in passenger numbers and weakening consumer demand across all divisions and a reduction in brand marketing, increased promotional activity and inflation headwinds, it said. ‘The group assumes no near-term improvement in consumer confidence and that jet fuel supplies can be maintained,’ it adds. Revenue in the 14 weeks to June 6 rose 5% on a constant currency basis, with like-for-like revenue up 2%. However, LFL growth slowed to 1% in last 7 weeks of the period. UK sales grew 5% at constant currency for the 14 weeks, or 2% LFL, with growth picking up to 4% LFL in the last 7 weeks of the period. North America sales rose 10% at constant currency, but declined 1% LFL in the 14 weeks, with the dip picking up speed to 4% in the last 7 weeks. This reflected lower passenger numbers following recent air fare inflation and a reduction in airline capacity linked to the Middle East conflict, which drove lower store footfall and in addition softer consumer demand led to lower spend per passenger growth. As a result of a softening in consumer demand, WH Smith said further promotional activity ‘has been and will be required’, whilst brand marketing investment is reducing and inflation headwinds continue, resulting in gross margin pressure. North America planning assumptions are for full-year revenue growth of 4% to 6% and headline trading profit margin of 5%. All other divisional trading assumptions are unchanged. Executive Chair Leo Quinn said WH Smith is acting to ‘sell, exit or renegotiate loss-making or low-return situations’ and replace directly-run operations with franchises in ‘sub-scale’ markets. ‘The impact of these actions will both require investment and result in a substantial non cash write off; but the returns to be had are clear,’ he added. WH Smith anticipates a ‘significant’ non-underlying non-cash impairment charge of up to £150 million for the financial year, relating to goodwill and store impairments. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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