TIDMSMWH
RNS Number : 5243E
WH Smith PLC
08 July 2021
WH Smith PLC
8 July 2021
Trading update for the 18 week period to 3 July 2021
Announcement of significant new business wins;
18 technology and accessories stores to open across major UK
airports
with further opportunities ahead
WH Smith UK Travel: New business wins
The Group has continued to explore new business opportunities
and we are pleased to announce that we have successfully won 18
technology and accessories stores across a number of significant UK
airports, including London Heathrow, London Stansted, Manchester,
London Luton, Birmingham and East Midlands. These stores will trade
under the InMotion brand, our market leading tech and accessories
business in North America. Combining our learnings and expertise
from North America, these stores will provide passengers with a
superior customer service experience and a combination of premium
products from brands such as Apple and Samsung, as well as an
extensive range of tech accessories. In a fully recovered travel
environment, we anticipate that these stores will deliver sales of
c.GBP60m per year. We expect these new wins will incur capex and
working capital investment of c.GBP15m which will be incurred in
the financial year ending 31 August 2022.
WH Smith Trading Update
While both our Travel and High Street businesses continue to be
impacted by the current trading environment, we are encouraged by
the improving trends. Total Group revenue in the period as a
percentage of 2019 total revenue has been:
% of 2019 Revenue
Q1 Q2 18 weeks to 3 July
21
---- ---- -------------------
High Street 88% 84% 86%
---- ---- -------------------
Travel 39% 34% 48%
---- ---- -------------------
Group 59% 58% 62%
---- ---- -------------------
WHSmith Travel
While passenger numbers remain significantly down versus 2019,
we are seeing a gradual recovery in sales as restrictions are
eased. In the 18 weeks to 3 July 2021, UK Travel total revenue was
32% versus 2019. By channel in the UK, air was 10%, hospitals were
80% and rail was 34% compared to 2019 levels. In the week to 3
July, total UK Travel revenue was 38% compared to 2019.
Our strategy to focus on customer conversion and increasing
average transaction values continues to progress well. In air, we
continue to plan cautiously as we await further government guidance
on air travel. In our hospital channel, we continue to see an
improved performance as hospitals return to general medical care.
Rail has continued to improve as leisure traffic has increased and
more people have returned to office working. Going forward, we see
further opportunities to win additional WH Smith stores in airports
and hospitals and we are well positioned as travel markets recover
and passenger numbers increase.
Our North America business has continued its encouraging
recovery with total revenue during the 18 week period at 74% of
2019 levels with more recent sales, in June, at 88% of 2019 levels.
TSA (Transportation Security Administration) data recorded
passenger numbers for the week ending 4 July 2021 at 82% of 2019
levels, versus 57% of 2019 levels for the week ending 25 April
2021. In addition, our resorts channel, primarily based in Las
Vegas, has seen a significant improvement in recent weeks. Visitors
to Las Vegas continue to recover and in May 2021 were 22% down
versus May 2019, with all Covid related restrictions being lifted
in Las Vegas from 1 June 2021. As a result, our North America
business is trading ahead of our expectations.
In Europe, where travel restrictions have been eased in recent
weeks, we are seeing a gradual improvement as passenger numbers
begin to recover. Outside of North America and Europe, our
international business is seeing broadly similar trends to UK air,
with passenger numbers significantly down versus 2019. As we have
done in the UK, we continue to focus on increasing average
transaction value and we are well positioned to benefit from the
growth opportunities that exist both in the news, books and
convenience category as well as in tech accessories.
Our new store opening programme remains on track and of the 100
Travel stores won, but yet to open, announced at our Interim
results, we have opened 16 of these stores to date.
WH Smith High Street
In High Street, total revenue in the 18 week period to 3 July
2021 was 86% versus 2019. This performance reflects high street
footfall which remains below pre-pandemic levels. However, our
websites, including funkypigeon.com, continue to deliver a good
performance.
During the period, we accelerated our commitment to champion
literacy across the UK. Customers can now donate money at the till
point and via whsmith.co.uk to support children's literacy and
deliver a shared goal to reach the 380,000 children in the UK that
do not own a book.
Funding and Liquidity
Our liquidity position remains strong and is consistent with our
refinancing announced at our Interim results on 29 April 2021. We
continue to focus on minimising cashflows and our cash burn over
the March to June period was approximately GBP2m per month. As at
the end of June 2021, we had cash of GBP95m and our revolving
credit facility of GBP250m remains undrawn.
Outlook
Following the stronger than anticipated performance from our
North America business, we anticipate a small improvement to
management's expectations for the current financial year.
Enquiries:
WH Smith PLC
Mark Boyle Investor Relations 07879 897687
Nicola Hillman Media Relations 01793 563354
Brunswick
Tim Danaher 0207 404 5959
WH Smith
WH Smith is a leading global retailer in news, books and
convenience for the world's travelling customer. With more than
1,700 stores across over 30 countries worldwide, WH Smith offer
customers a wide range of books, newspapers and magazines, travel
and tech accessories and food and drink. The Company has a growing
international business with over 580 stores primarily across the
world's leading airports. In November 2018, WH Smith acquired
InMotion, a leading technology and digital accessories retailer in
US airports. In December 2019, WH Smith acquired Marshall Retail
Group, a leading and fast-growing US travel retailer with over 170
stores. WH Smith's High Street business comprises over 560 stores
across the UK and customers can shop online 24/7 at
www.whsmith.co.uk.
InMotion
InMotion is the largest airport-based digital accessories
retailer in North America, comprising 117 stores across 43 airports
in the United States, with a presence in nine of the top ten and 22
of the top 25 busiest US airports. InMotion sells a range of
technology and digital accessories which, supported by strong and
trusted supplier relationships from the leading brands in the
category, includes premium headphones and earbuds, travel
accessories, mobile power, portable speakers and action
cameras.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTEASXXESKFEFA
(END) Dow Jones Newswires
July 08, 2021 02:00 ET (06:00 GMT)
Wh Smith (LSE:SMWH)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Wh Smith (LSE:SMWH)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024