WH Smith has announced the launch of a £50m share buyback after delivering a strong set of Q4 results through its peak trading period.

The retailer’s group revenue was up by 7% for the year compared to 2023, driven by its travel business which was up 10%.

WH Smith said that its travel business had “performed well over its peak trading period in the second half”, driven by key initiatives and strong passenger numbers.

The group is anticipating its outcome for the year to 31 August to be in line with expectations, and CEO, Carl Cowling, revealed that the retailer had ended the financial year in a “strong position”.

“Our UK division performed particularly well over the peak summer trading period,” Cowling said.

“We are also today announcing the launch of a £50m share buyback, which reflects strong ongoing cash flow, the receipt of the pension fund buyout cash return, as well as the strength of our balance sheet, with leverage now within our target range.

“Our colleagues have worked extremely hard to deliver these results over what has been a very busy summer, and I would like to thank them for their contribution to the group’s success.”

Investment director at AJ Bell, Russ Mould, commented that a £50m share buyback and a “decent” performance from WH Smith’s travel operations had given the group a “sparkle” to its latest trading update.

“It’s a good start but WH Smith needs to show it can sustain this momentum if it really wants to prove to the market that its growth story has legs,” Mould added.

“Shares in WH Smith had been drifting sideways for the past few years as North America hasn’t been the hotspot the company previously implied. The prospect of a weaker US economy clouded the outlook and the UK high street stores have continued their slow decline. These factors have led some shareholders to question why they should continue to hold the stock.

“The latest trading might tempt some investors to take another look but it is too early to declare that the business has been nursed back to full health.”

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