WH Smith reported a higher annual revenue on Wednesday as robust travel demand propelled sales of its products, sending the UK retailer’s shares up 11%.
The over 230-year-old brand which sells products ranging from sandwiches to books said trading in the new financial year so far was in line with expectations.
Strong passenger numbers in the second half of the year ending 31 August supported demand for WH Smith’s product offerings at airports.
SS Group, which operates food outlets across airports and rail stations in the UK said in July that it was optimistic about more people undertaking leisure travelling.
The travel industry has remained resilient in the face of high inflation and tight budgets, with data showing record air passenger numbers in the UK and US across the summer months.
Multiple sporting events, including the Olympics, Wimbledon and the Euros 2024 also contributed to more people travelling to Europe.
WH Smith’s revenue for the year rose 7% buoyed by strong travel demand across its UK and US markets and the introduction of new products.
The company also said it received proceeds of £85 million from a buyout of its pension trust while launching a £50 million share buyback.
Shares in the retailer rose 11% to a nearly nine-month high of 1,363 pence per share in early trade on Wednesday.
The London-listed firm is due to release its preliminary results for the year on 14 November.
