Wh Smith Share Discussion Threads

[kalai1] 21/4/2023 11:56

WH Smith posted Interims for the HY to 28th February 2023 yesterday indicating a strong first half performance ahead of expectations. Group revenue was up 41% to £859m, headline profit before tax and non-underlying items was up to £45m (2022: £14m). 60 new stores have opened so far this year including 11 in Canada, the new store pipeline of over 120 stores yet to open includes 60 in North America. The Group is still investing for growth, capex in the current financial year is expected to be around £150m. An interim dividend of 8.1p per share has been announced, the Group is enjoying a strong start to H2. Valuation is a little unhelpful with forward PE ratio at 18.1x and PS ratio at 1,27x both bottom quartile for the Speciality Retailers market. The Group's balance sheet is leveraged with headline net debt of £378m at 28 February 2023. Share price also lacks momentum and has been drifting sideways for 2 years. The business has growth and profits, but SMWH is a share to monitor for the time being...

...from WealthOracle

[undervaluedassets] 20/4/2023 11:24

looks alright. Best ever revenue these interims by a country mile. profitability growing

This will find its feet again in the years ahead... the business model and franchise are too strong not to.

[makinbuks] 20/4/2023 11:07

Apologies you are quite right, didn’t read far enough

[panache1] 20/4/2023 11:04

I thought they said cash flow of 90mill and confirmed cash and committed facilities (70% of them) on fixed interest rates. Net debt 378mill with access to 270mill of liquidity

[makinbuks] 20/4/2023 10:52

It struck me that cash flow and debt weren’t mentioned in the update, so I’m not sure how you know debt is under control. That said I have a lot of time for the management here so assume you are right.

Reduction in high street profit was also disappointing. Have they at last reached the limit of cost reduction possibilities in the face of rampant inflation?

[this_is_me] 20/4/2023 07:59

Great results and growth managed wisely to keep debt under control.

[faz] 20/4/2023 07:46

Its an excellent update and the figures, particularly for Travel and InMotion are very good. THeyhave given staff two pay increases in the last year- lowest paid received 4% then 9%, so a compound raise of over 13%

[ayl30] 20/4/2023 07:14

All you need to know"Looking ahead, we are very well positioned to capitalise on the substantial growth drivers across our markets and we expect to make further good progress in the years ahead. Current trading is strong and we are ahead of expectations for the full year."

[faz] 13/4/2023 08:16

me neither, I'm expecting good results

[panache1] 05/4/2023 10:00

Results out soon...not sure why the share price has been falling ?

[ayl30] 06/3/2023 12:20

A bit perky today, let's have more like this

[faz] 02/3/2023 11:38

trading is good, so on balance I still hold

[makinbuks] 02/3/2023 11:16

Thanks, I was unaware of that. Surprising, I am aware of one that was not but fairly historical so maybe rules have changed

[babbler] 02/3/2023 11:12

Listing rules say ANY cyber breach must be reported to the market.

[makinbuks] 02/3/2023 11:02

No impact on trading. Surprised it merited a RNS but appreciate the transparency

[faz] 02/3/2023 10:10

Cyber incident on employee data. Not sure how relevant this is, but poor IT security regardless, and serious enough to warrant an RNS.

[gswredland] 23/2/2023 12:30

Bit of profit taking?

[shaker45] 23/2/2023 10:41

Quiet board. Bit of a drop today but I don't see any news?

[faz] 18/1/2023 07:54

I thought you might be here Ayl30!

[ayl30] 18/1/2023 07:40

Reads well"The Group is in its strongest ever position as a global travel retailer. This strength, combined with the ongoing improvement in passenger numbers across the globe, means that we are confident of another year of significant growth in 2023."

[this_is_me] 18/1/2023 07:28

Well that is an impressive trading update. We should see a share price above £20 before too long.

[faz] 13/1/2023 15:45

And we hit 1600, nice