WH Smith performance 'unacceptable'

Struggling retailer WH Smith today said its high street shops had delivered an “unacceptable” performance as it confirmed City forecasts of a 29% drop in half yearly profits.

WH Smith said the poor showing by the main retail business had been the culmination of a “number of years where it had not fulfilled its potential”.

The group said pre-tax profits before goodwill and one-items in the period to February 29 were down by £26m (€38m) to £65m (€97m), while pre-tax losses after exceptional items had climbed to £72m (€107m) from £54m (€80m) previously.

However, it said its news distribution and UK travel retail activities performed well in the first half and the underlying result in its publishing business was strong.