WH Smith year profit up 15 percent
WH Smith, the newspapers, books and stationery retailer, posted a better-than- expected 15 percent increase in full-year profit, as margin gains and cost savings offset a continuing fall in underlying sales.
Schroders 35% profit rise in 2007"Given the current consumer environment, we are expecting a competitive Christmas trading season. We have planned accordingly," said Chief Executive Kate Swann.
For the year ended August 31, the 215-year-old retailer made a profit before tax and exceptional items of 76 million pounds. That was above analysts' average forecast of 74 million pounds and 66 million pounds in the previous year.
Total sales increased 4 percent to 1.35 billion pounds, but sales on a like-for-like basis, which strips out the impact of new stores, were down 2 percent.
The results reflect the strategy of Swann who joined the group in 2003. She has focussed on cost-cutting and improving gross margins by shifting the mix of products, better sourcing and better control of markdowns, rather than driving top-line sales.
The group's gross margin increased by 120 basis points year on year and the business delivered cost savings of 8 million pounds, with a further 10 million pounds of savings identified.
The full year dividend is 14.3 pence, up 21 percent.
Shares in WH Smith closed on Wednesday at 317.75 pence, valuing the business at 502 million pounds.
The stock has lost 22 percent of its value over the last year, underperforming the FTSE All Share General Retailers Index by 12 percent.
(Reporting by James Davey; Editing by Erica Billingham)
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