WH Smith’s profits have slumped ahead of a sale of its retail division to private equity.
By contrast, it hailed a booming travel arm, in a vote of confidence for its airport and rail ambitions.
Its 480 shops in town centres will be rebranded as TG Jones after being sold to Hobbycraft owner Modella Capital for £76million.
The familiar WH Smith name will in future only remain in shops in airports, train stations and hospitals, ending a 233-year long legacy, which began when Henry Walton Smith and his wife Anna opened up a newsagents in central London, in 1792.
WH Smith said high street sales fell 7 per cent to £239million for the six months to February 28.
That contributed to profits in this division falling by 32 per cent to £15million, and reflected fewer shoppers in town centres, it said.
End of an era: WH Smith’s High St stores will be rebranded as TG Jones after being sold to Hobbycraft owner Modella Capital for £76m
The update echoes retailers’ concerns that they will not be able to survive a barrage of higher costs over the next few years.
AJ Bell investment director Russ Mould said: ‘If there were any lingering questions about why WH Smith was prepared to let its high street operation go on the cheap they are answered in its latest first-half results.’
Sales at its travel arm rose 6 per cent to £712million for the same period, helping profits climb 12 per cent higher. WH Smith chief executive Carl Cowling struck a bullish tone about the future even as a global trade war cast a shadow.
The group, which already operates across the US and Canada including in Las Vegas casinos, plans to open 70 shops in North America over the next few years.
This is its ‘most exciting growth market’, he said.
Cowling added: ‘We are mindful of the increased level of geopolitical and economic uncertainty, however given the resilient nature of our business, we are well-positioned to benefit from the growth opportunities in global travel retail.’
The business was ‘pretty well sheltered’ compared to others as it imports less than 1pc of goods from China, which has been hit with heavy tariffs by the US.
And Cowling said the firm could stand to benefit if there was a slowdown in consumer confidence. More families may buy sandwiches and snacks to eat on the plane instead of dining at restaurants before flights, he said.
Shares fell 1 per cent, or 9p, to 941.5p even as WH Smith said the second half had ‘started well’.
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