Newsagent firm counts cost of terror attacks

Newsagent group WH Smith today warned the recent terrorist attacks had hit trading at its 500-plus shops in the US.

The Swindon group said following the events of September 11, it had seen a ‘‘material adverse impact’’ on trading at its 180 airport stores and 393 hotel gift shops across America.

WH Smith, which operates more than 1,500 shops around the world - including around 700 in the UK - added it could not assess the expected impact on profits.

‘‘Whilst we continue to evaluate the potential longer term impact of these events, at this early stage it is not possible to assess with any degree of certainty what the full effect on sales and profits in the current financial year will be,’’ it said.

In the group’s last financial year the US stores - which generate less than 10% of group sales and profits - reported sales of £192m and operating profits of £12m.

Shares in WH Smith slid 6% to 410p following the announcement, valuing it at £1.02bn - £65m less than yesterday.

WH Smith will report its full-year figures for the year to August 31 on October 18.