WH Smith revenue rises 5% but pre-tax profit falls to £76m

what happened

In its preliminary results announcement for the year ended 31 August 2026, WH Smith reported group revenue up 5% to £1,625m, or 2% on a like-for-like basis. Headline profit before tax and non-underlying items fell to £76m from £108m, in line with the company's earlier guidance. The company pointed to competitive UK airport contract renewals, inflation and a difficult macro backdrop as the main reasons.

Headline net debt dropped to £325m from £390m, and leverage fell to 2.0 times. The group raised £103m through an equity placement in June. Its first 10 weeks of the current year were flat on a like-for-like basis, which it attributed to softer consumer demand and lower passenger volumes in North America.

For the 12 months to August 2027, the company expects headline profit before tax of £75m to £85m, in line with current market expectations. It plans for Rest of the World revenue to fall 10–20%.

why it matters

The key takeaway for investors is that the profit outlook matches market expectations while current sales are stagnating. Non-underlying charges and restructuring keep pressure on cash flow, so the pace of margin recovery from the cost programme will be the main question for the shares in the coming quarters.

market impact

WH Smith shares: weak sales and lower profit weigh, though the outlook matches expectations

• ↔WH Smith shares mixed — weak current sales and lower profit against an outlook that matches market expectations

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