WH Smith has said it is well positioned to return to 鈥渕eaningful profit鈥 in 2022 despite the impact of Covid restrictions on its travel and high street stores.
The Swindon-based retail group reported a pre-tax loss of 拢104m for the year to August, though this was an improvement from losses of 拢226m for the previous period.
Total revenues for the year dropped by 13% to 拢886m compared with the previous year.
The firm said its high street business returned to growth over the year, with revenues increasing by 4% to 拢485m for the year.
This was more than offset by lower sales from train station and airport shops amid reduced traveller footfall.
Carl Cowling, WH Smith group chief executive, said despite the challenges presented to the high street during the pandemic, it had delivered a 鈥渞esilient and profitable performance鈥.
Mr Cowling added that its online businesses had delivered strong growth in the year, including a record performance for its digital greetings card retailer funkypigeon.com
The firm鈥檚 travel business saw sales tumble by 27% to 拢401m over the past year, with a 43% slump across its 海角视频 travel stores.
However the company reported a 鈥済ood start鈥 to the new financial year starting September. It said it had seen 鈥渋mproving trends鈥 within its travel arm, with sales for last month at 84% of the levels from October 2019.
Over the year the group expanded its airport technology stores businesses and said it has a 鈥渧ery strong pipeline of new store openings, with over 100 stores already won and due to open in travel over the next three years鈥, with the majority of these in North America.
Mr Cowling added: 鈥淭he group has delivered a good performance in the evolving trading environment.
鈥淲e are a financially strong and resilient group with significant opportunities to grow.
鈥淲hile we continue to plan with caution, the group is well positioned to capitalise on the recovery in our key markets and take advantage of the many exciting opportunities ahead.鈥
The group said that as of October 2021, it had 1,540 stores open around the world out of a total portfolio of 1,711 stores.
Like this story? Why not sign up to get the latest South West business news straight to your inbox.
