Cost cutting pays off for WH Smith as profits rise

 
Guy Bentley
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High street retailer WH Smith has seen its cost cutting strategy bear fruit as the group reported a rise in profits before tax of three per cent to £69m, for the six months ended 28 February 2014.

The newsagent found £9m of cost savings on the high street in the first half, with a further £5m pencilled in for the second half. However, group total sales and like-for-like sales were both down four per cent.

Investors will be welcoming a rise in the interim dividend from the previous year of 15 per cent to 10.8p. WH Smith also welcomed its expansion into travel hubs, with 150 units being won.

Stephen Clarke, group chief executive said:

The Group has delivered another strong performance, with profit growth in Travel and High Street, demonstrating the continuing success of our strategy

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