WH Smith has confirmed it is considering a potential sale of its high street business.

Sky News has reported that Modella Capital, the owner of Hobbycraft, is one of a handful of parties to have held discussions with WH Smith and its advisers.

WH Smith oversaw a 7% rise in annual revenue last year to £1.92bn, although this was largely a result of a strong performance in its travel business. The sale of its high street business would leave the retailer to focus on its travel operations, which grew by 11% last year in the 12 months to 31 August.

In a statement to the London Stock Exchange today, WH Smith announced that it was considering its options over the future of its high street business.

“WH Smith confirms that it is exploring potential strategic options for this profitable and cash generative part of the group, including a possible sale,” the group stated.

“Over the past decade, WH Smith has become a focused global travel retailer. The group's travel business has over 1,200 stores across 32 countries, and three-quarters of the group’s revenue and 85% of its trading profit comes from the travel business.

“There can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate.”

Sky News added that WH Smith was “keen to wrap up a deal during the spring”.

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