WH Smith is on track to finalize its sales UK High Street Chen By the end of this month, the owner of Hobbikraft to Modella Capital.
£ 76 million deal agreed in March, resulting in WH Smith brand British high roads replaced by TG JonesAs part of the agreement, about 480 stores and 5,000 employees will infection under Modela Capital.
In an update released before the completion of sales, WH Smith The remaining travel division reported a strong performance, including shops in airports, train stations and hospitals. Such sales in this division increased by 5 percent in the quarter ended May 31.
The company did not disclose the third quarter data for the high street arm Adjacent salesHowever, in April, half -year results revealed a 25 percent decline in profits for the series, falling to £ 20 million.
In the UK, its travel branch increased such sales by 6 percent in the third quarter, the airport shops improved the remaining assets with a 7 percent increase.
It said that it recently offered its first Smith Family Kitchen Coffee at an airport, as well as a new standalone bookshop.
Across its travel chain to North America, the sales of comparable stores increased by 2 percent, but increased by 7 percent based on total and continuous currency.
In the rest of the world, as sales were 7 percent higher and increased by 12 percent based on total and continuous currency.
The group said: “When we are alert to the massive economic and geopolitical uncertainty, the group is well deployed because we enter our extreme summer trading periods.”
Its high street arm sales comes after years of low pressure sales and profits in the division, while WH Smith’s travel business has increased to create its sales and profit wholesale with more than 1,200 stores in 32 countries.
The buyer Modela Capital specializes in investing in retailers.
It has earlier put money in chains including paperchase and tie racks, while in August last year, it snatched the art and craft retailer Hobikraft for an unknown amount.
AJ Bell’s investment director Ras Mold said: “To complete a few weeks with its high road business sales, WH Smith’s trading update presents a picture that the slim-down company looks like going ahead. All this is about assuring passengers to pay the premium for goods in the ball.
“It is a starting point for investors to better understand the size and capacity of the business, and to feel for the growth rate in the long term which is essentially a travel-hub company, which is with some shops in hospitals. Keeping this in mind, keeping in mind this, a meaning that investors can expect more from WH Smith, which is currently distributing.
“The US has lagged one backward to the group in recent years and is holding something to catch some. Overall, WH Smith needs to pursue a gear and to prove that it was worth flying the cash cow that was the UK arm.”
