WH Smith confirms separation plans as sales slide

British retail group WH Smith confirmed plans today to separate its news distribution arm from its retail business.

The announcement came as the newsagent and bookseller blamed the tough trading environment for a drop in like-for-like sales of 3% to £1.3bn (€1.87bn) for the six months to February 28.

Pre-tax profits were up 4% to £71m (€102m), in line with market expectations.

Last month, reports suggested WH Smith was looking to hive off its news distribution arm – possibly through a stock market flotation.

Chief executive Kate Swann said a separation of the businesses would enable the news distribution arm to "benefit from increased focus and to pursue their strategies to maximum effect".

She added: “Overall, we continue to be cautious about consumer spending. However, we remain confident in the outcome for the full year.”