WH Smith PLC Trading Statement (8459F)
12 Marzo 2020 - 1:00AM
UK Regulatory
TIDMSMWH
RNS Number : 8459F
WH Smith PLC
12 March 2020
12 March 2020
WH SMITH PLC
First Half Trading and Covid-19 Update
In light of current equity market conditions and the rapidly
changing developments regarding Covid-19, the WH Smith Group
provides the following update.
First Half Trading Update:
For the first half of the year to 29 February 2020, Group total
revenue was up 7% with like-for-like (LFL) revenue down 1%. Total
revenue in Travel was up 19% with LFL revenue up 2%. In High
Street, total revenue was down 5% with LFL revenue down 4%. As a
result, the Group is confident that underlying profit before tax
for the first half, which will be reported on 22 April 2020, will
be in line with market expectations.
Covid-19 Update:
WH Smith's key priority is the health and safety of its
employees, customers and business partners.
The Group has been monitoring the financial impact of Covid-19
since the outbreak began across both its Travel and High Street
businesses. In Asia Pacific, which accounts for approximately 5% of
Travel's revenue, we have seen a significant impact on the business
since February. In addition, over the last two weeks, the Group has
started to see a material reduction in passenger numbers at
airports outside of Asia Pacific in the UK (approximately 60% of
Travel's revenue), the US (approximately 25% of Travel's revenue)
and in Europe.
The Group is managing the business to protect profitability and
is taking all necessary action to reduce costs. Based on current
trading and modelling, the Group believes that the effects of
Covid-19 will result in a reduction in our expectations for revenue
and profit across the Travel business for the second half. Today,
the Company is therefore providing guidance on the impact on full
year results of Covid-19 based on an assumption of a challenging
third quarter and a modest normalisation in the fourth quarter. For
UK Travel, we expect revenue for the six months to be down
approximately 15% on expectations which includes airports, our most
affected channel, down 35% in March and April. On the same basis,
including significant reductions in March and April, second half
revenue in the US is expected to be approximately 20% lower than
our expectations. The rest of our International business is also
expected to be approximately 20% lower.
Clearly, the position is evolving fast and the Group will
provide a further update at its Interim results on 22 April
2020.
While the Group is currently not seeing a significant impact on
its High Street business, it recognises that Covid-19 could result
in reduced high street footfall.
As a result, the Group currently estimates an adverse impact in
the financial year ending 31 August 2020 of between GBP100m and
GBP130m on the Group's revenue and between GBP30m and GBP40m on
underlying Group profit before tax.
WH Smith is a resilient business with a strong balance sheet,
substantial cash liquidity and strong cashflow. The Group has a
strong management team in place and has consistently demonstrated
that it can adapt and respond quickly to changing market
conditions.
Over the longer term, the Board remains confident in the
strategy and believes the Group is well positioned to benefit from
the normalisation and growth of the global travel market.
Enquiries:
WH Smith PLC
Nicola Hillman Media Relations 01793 56 3354
Mark Boyle Investor Relations 020 3981 1285
Brunswick
Fiona Micallef-Eynaud / Camille Ng 020 7404 5959
Advance Notice of Interim Results
WH Smith PLC will announce its Interim Results 2020 on Wednesday
22 April 2020.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTEAEDFFEEEEAA
(END) Dow Jones Newswires
March 12, 2020 03:00 ET (07:00 GMT)
Wh Smith (LSE:SMWH)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Wh Smith (LSE:SMWH)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024