Wh Smith Share Discussion Threads

[makinbuks] 21/10/2019 13:45

Getting a placing away at a premium to the market is pretty impressive in these uncertain times. The hike in the dividend is impressive too, given the new shares in issue. It appears the board recognizes that they have wrung all they can from the high street business and can grow Travel only in a limited way organically so now they look for growth by acquisition. This will make SMWH a riskier play but could well be the driver for the next share price leg up. One of my favourite long term holds. Phil Oakley at the IC is supportive and comments often

[karateboy] 18/10/2019 14:32

The company is getting itself ready for FTSE 100 perhaps in 12 months time.

[makinbuks] 04/7/2019 15:58

100,000 shares bought back in June all at under £20.

[makinbuks] 19/6/2019 13:45

This looks like an excellent entry point. At some point this year these will be 10%+ higher than this

[qantas] 29/5/2019 12:42

Please do your own research as always.

[carlsagan1] 20/5/2019 11:34

ii have decided to increase fees again, finally time I left them. from june 1st they will charge £9.99 me a month even if I dont trade. yea right!

Any recommendations for a cheaper broker?

I am considering going to iweb-sharedealing(Halifax) for a fixed £5 a trade or X-O(Jarvis) for £5.95, neither have monthly, yearly, or inactivity fees like ii

The so called trade "credit" they give you also expires after 90 days.

[makinbuks] 11/4/2019 12:21

They borrowed £200m to buy IM but only spent £161m. Good to see the share buy back at £25m for six months and the increase in the dividend but those were covered out of the surplus term loan as the net operating overdraft increased by £5m. So with the one offs it wasn't a great period for cash generation. Good to note the confirmation of £100m FCF for the full year

[makinbuks] 11/4/2019 12:16

Following on from being an IC tip of the year, Phil Oakley did a very positive piece on it last week. I suspect they will reiterate their buy tip this week

[makinbuks] 11/4/2019 12:14

Half year results broadly in line with expectations I would say. Disappointing that Group profit was £81m compared to £82 despite a contribution from In Motion. Also think the one off's are high at £16m, suspect some window dressing there. I thought the increase in travel profit might have been greater with the IM contribution, but its early days and clearly there is loads of potential there. Lots of detail on the potential for further growth and the innovations they bring about through partnerships and store formats. The high street business was probably slightly better than expected and with 300 leases up for renewal in the next three years and average reduction of rent on renewal 33% there is clearly more scope for margin improvement to negate falling sales

[connorcampbell] 10/4/2019 13:10

!YOUTUBEVIDEO:fp_HcNwGJZU:
Can Thursday’s interim results give WH Smith a bookish boost?

There is now always a relative sense of predictability about WH Smith’s statements: Travel does well, High Street doesn’t. The nuance tends to lie in how good and how bad. For the 20 week period to January 19th, total sales at the Travel business were up a very healthy 16% following the acquisition of the US travel retailer InMotion, with like-for-likes rising 3%; High Street, meanwhile, saw total sales tumble a manageable 1%, alongside a 2% dip in comparable sales. This left WH Smith with a 6% increase in overall sales and a flat LFL performance.

A similar set of figures on Thursday may be enough to satisfy investors, while they’ll want to hear further details of the InMotion integration and plans for the US as a whole. And for reference, at the midway point last year, WH Smith posted a 1% decline in group pre-tax profit to £82 million, so an improvement on that could be the key if the stock wants to keep climbing towards £23-plus all-time peak.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here:

[connorcampbell] 10/4/2019 13:10

Can Thursday’s interim results give WH Smith a bookish boost?

There is now always a relative sense of predictability about WH Smith’s statements: Travel does well, High Street doesn’t. The nuance tends to lie in how good and how bad. For the 20 week period to January 19th, total sales at the Travel business were up a very healthy 16% following the acquisition of the US travel retailer InMotion, with like-for-likes rising 3%; High Street, meanwhile, saw total sales tumble a manageable 1%, alongside a 2% dip in comparable sales. This left WH Smith with a 6% increase in overall sales and a flat LFL performance.

A similar set of figures on Thursday may be enough to satisfy investors, while they’ll want to hear further details of the InMotion integration and plans for the US as a whole. And for reference, at the midway point last year, WH Smith posted a 1% decline in group pre-tax profit to £82 million, so an improvement on that could be the key if the stock wants to keep climbing towards £23-plus all-time peak.

Read what Spreadex analysts have to say, or watch a 60 second earnings preview video, here: hxxps://spreadex.com/?tid=389537

[makinbuks] 24/1/2019 13:25

Reassuring trading update. New acquisition starting to deliver, Travel business still growing LFL and organically, High Street volumes decreasing (but not collapsing) but cost savings feeding into higher margins.

[makinbuks] 10/1/2019 14:09

Up today despite going XD

[makinbuks] 09/1/2019 21:36

Results today from SHOE are worth a read for the effect of lower rents obtainable in the market as "supply continues to outstrip demand". Must put SMWH in a very strong position in the high street as a top quality anchor

[makinbuks] 07/1/2019 14:53

One of IC's tips of the year

[makinbuks] 12/12/2018 16:23

Another 300k shares bought for almost £6m so £18m since the results and another £5m to come via Casenove in January

[makinbuks] 28/11/2018 16:36

£12m roughly spent since the results buying back around 600k shares. Nearly 25% of the announced target for the year spent in the first two months

[makinbuks] 19/11/2018 12:09

Another 115k shares bought back last week delivering c. £2.3m of the £50m pledge. A clear ramp up in commitment since the results

[makinbuks] 16/11/2018 13:15

Some interesting analysis here:

hxxps://masterinvestor.co.uk/equities/why-wh-smith-could-be-a-solid-choice-for-dividend-growth/?utm_source=Daily+Bulletin&utm_campaign=6977cbe92b-Daily_Bulletin_20181115&utm_medium=email&utm_term=0_25eff0bb7f-6977cbe92b-34939645

A little out of date in that it doesn't mention the acquisition.

I am surprised at the number of words allocated to the DB pension issue. The £3m per anum contribution will clear the deficit in four years. On an IAS 19 basis there is actually a large surplus which is unrecognized on the balance sheet. (sensibly) As interest rates rise I would also expect a marginaly positive effect on the deficit despite the liability matching investment strategy and hedging they have in place

[makinbuks] 12/11/2018 13:31

Since the results announcement a month ago the company has bought back c. 310k shares at a cost of c. £6.2m. A good start towards the announced "up to" number of £50m for the year.

Not convinced any more this is wise when they are introducing borrowing to buy the business in the US. I do welcome an element of leverage however.

Somewhat disappointed that all but one Director sold their entire allotnment under the incentive schemes. Selling half to cover tax liability is expected and it may be their existing holdings are significant in relation to their overall financial position but its still not a great signal.

Still holding

[makinbuks] 30/10/2018 12:22

Yes , clearly lots of challenges highlighted in the results but a positive response from management. I like the fit. Might they sell the high street off to private equity and rebrand the travel section?