WH Smith has posted a 3% increase in half-year profits as it continues to cut costs in the business.
The high street retailer said group pre-tax profits rose from £67m to £69m in the six months to 28 February. Trading profits rose 3% to £30m in its 701 travel stores, and by 2% to £49m in its 607 high street stores.
However, its sales continue to decline. WH Smith said group total sales fell 4% to £613m during the period. Like-for-like sales were also down 4%.
Its high street division reported a 7% fall in sales, or by 6% on a like-for-like basis. Its travel stores reported a 2% sales increase, although they were down 1% like-for-like.
Despite the sales slump, CEO Stephen Clarke said the company had delivered “another strong performance with profit growth in travel and high street demonstrating the continuing success of our strategy.”
He added: “The group remains highly cash generative. During the first half we returned £47m to shareholders through the dividend and share buyback announced in October 2013 and today we have increased the interim dividend by 15%.”
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