23 April 2026  

 

 

WH SMITH PLC

 

INTERIM RESULTS ANNOUNCEMENT

FOR THE PERIOD ENDED 28 FEBRUARY 2026

 

Solid first half trading performance; cautious outlook ahead of peak summer trading period

 

·    Total Group revenue up 5% to £748m (2025¹: £716m)

o  UK up 2%; North America (NA) up 10%*; Rest of the World and Other ('ROW') up 8%*

·    Headline Group profit before tax and non-underlying items² £3m (2025¹: £21m)

o  Headline Group trading profit² of £32m (2025¹: £47m)

·    Headline diluted EPS before non-underlying items² (0.8)p (2025¹: 11.5p)

·    Good progress against the key priorities set out in December across all divisions

·    UK trading performance in H1 impacted, as expected, by disruption following the refurbishment of multiple large airport stores and inflation headwinds

·    Successfully opened global flagship stores at Heathrow Terminals 3, 4 and 5 in March and April

·    Travel Essentials stores in North America delivering a strong performance with total revenue up 22%* in H1; decisive actions taken in the Resorts business; good progress made against remediation plan

·    Continued progress in core ROW markets with actions to address challenging performance and reduce exposure in sub-scale markets 

·    Suspension of the dividend to reduce debt and strengthen the Group's financial position

·    In light of the uncertainty arising from the conflict in the Middle East, the Group is taking a more cautious outlook reflecting the impact on passenger numbers and weaker consumer confidence. At this stage, the Group expects to deliver FY26 Headline Group profit before tax and non-underlying items² of £90m - £105m.

 

Leo Quinn, Executive Chair, commented:

"The immediate focus is to restore confidence and ensure the right foundations are in place to support profitable growth and long‑term value creation.

"Moving forward, the Board and management team will have a relentless focus on driving cash, cost discipline and strengthening the balance sheet. As a first step, the Board has taken the prudent decision to suspend the dividend.

"This is a business with a strong brand and proposition in high‑footfall travel markets and the new flagship stores opened across Heathrow airport are raising the global standard for travel essentials retail.

"None of this is achievable without our people. Making sure our colleagues are empowered is a key priority, as engaged teams execute better, serve customers better and drive higher performance over time.

"While the near-term outlook is uncertain, I am confident that, with the right focus and discipline, the business can deliver superior returns for the benefit of our colleagues, partners and shareholders over the longer-term."

 

* On a constant currency basis

¹ Comparative periods have been restated to correct the accelerated supplier income recognition and inventory-related items in the North America division (refer to Note 1b for further details) and to separately disclose results from discontinued operations (refer to Note 1a for further details)

² Alternative Performance Measure (APM) defined and explained in the Glossary on page 48. All numbers presented are from continuing operations unless otherwise stated

 

 

Group financial summary - continuing operations

£m unless indicated otherwise Trading profit2	IFRS 16		Headline pre-IFRS 163
	Feb 2026	Feb 2025 Restated1	Feb 2026	Feb 2025 Restated1
UK	38	40	34	40
North America	9	8	2	5
Rest of the World and Other ('ROW')	(5)	5	(4)	2
Group trading profit2	42	53	32	47
Group profit before tax and non-underlying items2	2	17	3	21
Diluted (loss)/earnings per share before non-underlying items2	(1.6)p	8.5p	(0.8)p	11.5p
Non-underlying items2	(27)	(21)	(28)	(20)
Group profit before tax	(25)	(4)	(25)	1
Basic and diluted loss per share	(20.0)p	(5.5)p	(20.0)p	(1.6)p

 

Revenue performance - continuing operations

 

£m	Total Revenue Half Year 2026	Total Revenue Half Year 2025 Restated1	Total Revenue % change	Constant currency Half Year 2026 % change4	LFL Half Year 2026 % change	LFL 7 weeks to 18 April 2026 % change
UK	392	384	2%	2%	2%	0%
North America	204	194	5%	10%	1%	2%
Rest of the World and Other	152	138	10%	8%	6%	5%
Group	748	716	5%	5%	2%	2%

 

Current trading

 

In the first 7 weeks of trading for H2 2026, Group like for like ('LFL') revenue² was up 2%. By division, the UK delivered flat LFL revenue growth, largely reflecting a softening in Air following disruption to flight schedules to the Middle East. In North America, LFL revenue growth was 2% with the core Travel Essentials business continuing to perform well with LFL revenue growth of 6%. Rest of the World delivered LFL revenue growth of 5%.

 

Outlook and planning assumptions

 

In light of the uncertainty arising from the conflict in the Middle East, the Group is taking a more cautious outlook reflecting the impact on passenger numbers and weaker consumer confidence. Much will depend on the peak summer trading period and the Group assumes no immediate improvement in consumer confidence and assumes that jet fuel supplies can be maintained. At this stage, the Group expects to deliver FY26 Headline Group profit before tax and non-underlying items² of £90m - £105m.

 

 

³ The Group adopted IFRS 16 'Leases' with effect from 1 September 2019. The Group continues to monitor performance and allocate resources based on pre-IFRS 16 information (applying the principles of IAS 17), and therefore the results for the years ended 31 August 2025 and 31 August 2024 have been presented on both an IFRS 16 and a pre-IFRS 16 basis. Measures described as 'Headline' are presented pre-IFRS 16. For the purposes of narrative commentary on the Group's performance and financial position, both pre-IFRS 16 and IFRS 16 measures are provided. Reconciliations from pre-IFRS 16 measures to IFRS 16 measures are provided in the Glossary on page 48. Group revenue was not affected by the adoption of IFRS 16, and therefore all references to and discussion of revenue are based on statutory measures.

⁴ Constant currency

 

Planning assumptions for the full year ending 31 August 2026: total Group revenue growth of c.3%-5%. In the UK, total revenue growth of c.1%-3%, in North America c.6%-8%, and in the Rest of the World division, c.2%-4%.

 

Headline trading profit margin² in the UK of c.13%-14%, North America c.7%, and c.4% in the Rest of the World. This reflects the expected reduction in brand marketing, increased promotional activity and inflation headwinds.

 

Full year headline net debt² is expected to be around £420m.

 

ENQUIRIES:

 

WH Smith PLC
Nicola Hillman	Media Relations	01793 563354
Mark Boyle	Investor Relations	07879 897687
Brunswick
Tim Danaher		020 7404 5959

WH Smith PLC's Interim Results 2026 are available at whsmithplc.co.uk.

 

GROUP OVERVIEW

The Group has delivered a solid first half trading performance against a backdrop of investment related disruption and inflation headwinds.

The UK business is focused on retaining category leadership in Travel Essentials through the one-stop-shop format. Good progress has been made, with refurbished stores opening under this format across Heathrow Terminals 3, 4 and 5, Liverpool, Belfast and East Midlands airports. Within the UK, the focus also remains on expanding the Travel Essentials proposition by targeting new and better quality space. Growth categories of health and beauty, including the recently launched own-brand 'Roame' range, and expanding food-to-go remain a priority.

In North America, the core Travel Essentials business continues to perform well with this segment being the focus for investment and profitable growth going forward. The Resorts and InMotion businesses continue to perform below expectations. Following a review of the Resorts business in the first half, 3 unprofitable fashion stores have closed and the business is on track to exit additional unprofitable fashion and speciality stores by the end of the current financial year. The InMotion business, including the breadth of the portfolio of stores, is under active review and future store openings under this brand will only be considered as part of strategically important tender packages.

In the ROW division, future investments will be focused in strategically important markets where the business already has scale, including Ireland, Spain and Australia. In the first half, new investments were agreed in the Republic of Ireland, including key units at Dublin airport. Moving forward, the focus will be to reduce the Group's presence in or exit sub-scale markets. Consistent with this approach, 4 uneconomic stores were closed at Dusseldorf airport in the period and the Group's Norwegian business has been closed. Future growth opportunities will only be considered using a less capital-intensive franchise model.

The Group's remediation plan implemented following the issues identified in the North America division, to strengthen governance, controls and systems and globally aligned processes is progressing well.

The Group continues to cooperate with the FCA following an investigation into the Company in respect of its compliance with UK Listing Principles and Rules and the Disclosure and Transparency Rules in relation to the matters announced by the Company on 19 November 2025. The Group is committed to cooperating fully with any engagement in relation to the North America accounting issue from any regulatory body or other authority.

On 7 April 2026, Leo Quinn joined the WHSmith Group as Executive Chair.

Looking ahead, the immediate focus for the Group is to drive cash, improve efficiency, reduce debt, and restore the business to profitable growth.

 

Group revenue - continuing operations

 

	6 months to 28 February 2026
	Total vs 2025	Total constant currency4 vs 2025	LFL2 vs 2025
UK	2%	2%	2%
North America	5%	10%	1%
Rest of the World and Other	10%	8%	6%
Group	5%	5%	2%

Total Group revenue at £748m (2025¹: £716m) increased by 5%, with LFL² revenue up 2%, compared to the prior year. By division, the UK was up 2% on a total basis, North America was up 10%⁴, and ROW was up 8%⁴. On a LFL basis, the UK was up 2%, North America was up 1%, and ROW was up 6%.

Headline Group trading profit

The Group delivered a Headline trading profit² in the period of £32m (2025¹: £47m). The UK decreased by £6m to £34m; North America decreased by £3m to £2m; and ROW decreased by £6m to a loss of £4m.

Headline Group profit before tax and non-underlying items² was down £18m to £3m (2025¹: £21m). Group loss before tax, including non-underlying items and on an IFRS 16 basis, was £25m (2025¹: £4m) in the period.

Group balance sheet

The Group maintains a solid balance sheet with cash generative trading operations and good liquidity. The Group had the following cash and committed facilities as at 28 February 2026:

£m	28 February 2026	Maturity
Cash and cash equivalents5	48
Revolving Credit Facility6	400	June 2030
Convertible bonds	327	May 2026
US Private Placement notes	200	2032-2038
Term loan	120	March 2029

The Group has a revolving credit facility ('RCF') with a maturity date of 30 June 2030 and a £327m convertible bond with a maturity of 7 May 2026 which has a fixed coupon of 1.625%.

As at 28 February 2026, Headline net debt² was £496m (August 2025: £390m) and the Group has access to c.£550m of liquidity. Leverage² at 28 February 2026 was 2.9x Headline EBITDA² (August 2025¹: 2.1x). Net debt including IFRS 16 lease liabilities at 28 February 2026 was £1,010m (August 2025: £874m).

The Group's refinancing, as previously announced, extends and smooths the maturity profile of its debts. In March 2026, the US private placement notes were fully drawn down and the Group cancelled its 12-month £200m term loan facility. Additionally, the Group exercised the first of two one-year extension options on the £120m term loan taking its maturity to March 2029. The term loan is expected to be drawn down ahead of repayment of the convertible bonds in May 2026. 

Group cash flow

The Group generated a Headline EBITDA² of £48m in the period (2025¹: £62m). Capex was £50m (2025: £38m⁷). As expected, working capital outflow was £54m⁸ in the period (2025^1,8: outflow of £72m), which results from a one-off payables timing headwind linked to one of our large franchisor partners at the end of last year, new store openings, and the seasonality of the business.

 

⁵ Cash and cash equivalents comprises cash in bank and on deposit of £33m and cash in transit of £15m

⁶ Draw down of £219m as at 28 February 2026

⁷ Excluding capex related to non-underlying items of £nil (2025: £1m)

⁸ Pre-IFRS 16 and before non-underlying items

 

In total, there was a free cash outflow² in the period of £61m (2025¹: £72m). This year, it is expected that, subject to investment opportunities, Headline net debt² will be in the region of £420m at the end of the financial year.

 

Capital allocation

The Group remains focused on maintaining an efficient balance sheet and on a disciplined approach to capital allocation. In the near-term, the Group has rebalanced its capital allocation priorities to:

·    strengthen the balance sheet through tighter cash control and improved cash generation;

·    invest to grow and protect value. This will be achieved by investing in business development and new space growth with a clear focus on attractive returns. Furthermore, business assets will be protected through maintenance and transformation projects. It is anticipated that capex spend will be c.£90m in the current financial year; and

·    the dividend has been suspended to support the strengthening of the balance sheet and the Group will look to reinstate returns to shareholders when excess cash is available.

CONTINUING OPERATIONS

Total revenue for the Group was £748m (2025¹: £716m), an increase of 5% compared to the previous year, generating a Headline trading profit² in the period of £32m (2025¹: £47m).

£m	Trading profit2 (IFRS 16)		Headline trading profit2 (pre-IFRS 16)		Revenue
	Feb 2026	Feb 2025	Feb 2026	Feb 2025	Feb 2026	Feb 2025
		Restated1		Restated1		Restated1
UK	38	40	34	40	392	384
North America	9	8	2	5	204	194
Rest of the World and Other	(5)	5	(4)	2	152	138
Total	42	53	32	47	748	716

 

UK

In the UK, total revenue in the first half was £392m (2025: £384m) which resulted in a Headline trading profit² of £34m (2025: £40m). This reduction year on year reflects the inflationary pressures on the business and the expected disruption caused as a result of the store refurbishments across several airport locations in the period.

Within this division, a key area of focus is to develop ranges and formats that are relevant to the customer at each stage of their journey enabling them to make best use of their time when travelling and put more products into their baskets to grow spend per passenger.

In food-to-go, the Smith's Family Kitchen offer is going from strength to strength with award-winning products, an expanded meal deal proposition and an enhanced hot food and coffee range that is resonating strongly with customers. 

The health and beauty category is delivering strong growth and, during the first half, the business launched its first own-brand health and beauty product range under the brand 'Roame'.

These extended ranges enable the business to continue to innovate through format development, ensuring that the one-stop-shop proposition is credible to customers and landlords while creating further space growth opportunities.

Optimising the estate and reviewing the division's operating model has also been a key area of focus in order to realise substantial cost efficiencies in the face of inflationary cost pressures. This will continue into the second half of the financial year.

During the period, 7 new stores were opened, including 4 at airports, 1 Hospital store, 1 Rail store and 1 motorway service area franchise. 11 small and less well-located stores were closed.

 

Revenue growth by key channels

	Revenue (% change) 6 months to 28 February 2026
	Total vs 2025	LFL2 vs 2025
Air	1%	2%
Hospitals	8%	4%
Rail	1%	(2)%
Total UK	2%	2%

Air

Total revenue increased by 1%, with LFL revenue up 2%, reflecting the expected trading disruption resulting from the division's largest ever store development programme. In the first 7 weeks of trading in the second half, LFL revenue was down 3%. This reflects the trading disruption from the store refurbishments, the impact on passenger numbers as a result of the conflict in the Middle East and inflation headwinds.

 

Since the beginning of the financial year, 6 one‑stop‑shops have opened ahead of the summer, including refurbished stores at Heathrow, Liverpool, Belfast and East Midlands airports. These new format stores will broaden the offer for customers and improve convenience and basket size in these high‑footfall locations.

 

Health and beauty and food-to-go remain attractive growth categories and they are well aligned to passenger needs.

 

Over the past 4 weeks, 3 flagship stores have opened across Heathrow Terminals 3, 4 and 5. Each of these locations showcase the full breadth of the Travel Essentials proposition, including a full health and beauty offer and instore pharmacies. These latest store openings are setting a new global benchmark for Travel Essentials with improved design, in store navigation and extensive ranges. While it is early days, their performance is encouraging.

 

Heathrow Terminal 3 is the division's highest density store with c.6,500 transactions per day. This 5,500 sq ft store showcases the best of the one-stop-shop format with a full health and beauty offer, including an instore pharmacy, alongside a Smith's Family Kitchen food-to-go range and a new coffee and breakfast offer. These categories continue to drive good growth demonstrating the vast choice available to customers and customer demand.

 

At Heathrow Terminal 5, a larger 6,500 sq ft refurbished store opened at the beginning of April encompassing the full one-stop-shop offer with an adjoined InMotion store. The reduced InMotion footprint has enabled greater investment into higher growth and higher margin categories, including health and beauty and food-to-go. Within the InMotion store, customers can browse a full Apple shop-in-shop alongside headphones and tech accessories from other major global brands.

 

During the period, 4 new stores were opened at Manchester airport and 9 stores were closed, primarily as a result of landlord redevelopment.

 

Hospitals

 

Hospitals is the UK division's second largest channel by revenue and it delivered a strong performance in the period, with revenue increasing by 8% and LFL revenue up 4%. In the first 7 weeks of trading in the second half, LFL revenue increased by 3%. This growth reflects the strength of the multi-format approach and the strong partnerships in place.

During the period, 1 new hospital store was opened. The division currently operates from 155 stores in over 100 hospitals, and there are still significant space growth opportunities in this channel.

Rail

Total revenue in Rail increased by 1% year on year with LFL revenue down 2%. In the first 7 weeks of trading in the second half, LFL revenue decreased by 1%. During the period, 1 new store opened at London Bridge station featuring the one-stop-shop format. In addition, a key area of focus in this channel is on broadening more food and beverage on-the-go ranges in order to maximise customer convenience. There is the opportunity to expand this further across more stores in Rail. 1 store was closed in the period.

NORTH AMERICA

Despite the challenges at the start of the financial year, North America is an attractive market and investment opportunity. This is the largest travel retail market in the world with significant investment and long-term structural growth trends. There is therefore plenty of opportunity to capitalise on the substantial growth opportunities given the division's small market share.

Total revenue in North America in the period increased by 10%⁴, on a constant currency basis, with total revenue up 5% to £204m (2025: £194m). The Air segment in North America was up 15% on a constant currency basis and LFL revenue increased by 3%. Within this, the Travel Essentials business, which accounts for over 55% of revenue in North America, was the key driver of performance, with total revenue on a constant currency basis up 22% and up 6% on a LFL basis.

This division delivered a Headline trading profit² of £2m (2025¹: £5m), with the reduction year on year largely driven by increased costs associated with the new logistics set up and the annualisation of increases in labour costs. The prior half year has been restated for the supplier income and inventory‑related items identified at FY25.

During the first half, 18 new stores were opened across airports including Dallas Fort Worth, Denver, Detroit and Albuquerque.

Travel Essentials

The Travel Essentials business has consistently delivered a strong performance, growing 19% on a constant currency basis in FY25 and up 22% in the first half, underpinned by customer demand and attractive double-digit margins.

Travel Essentials is the division's most profitable segment and on a fully allocated basis generates around a 10% Headline trading profit margin². It is anticipated that as the business grows and operations are enhanced, margins will grow further, which in turn, will support the profitability of the North America division overall.

In January, the team opened a new store at Albuquerque airport featuring a marketplace format. This is a good example of where it is possible to introduce the convenience of everything under one roof, similar to the Group's one-stop-shop format in the UK. Under this contract, there is the flexibility to realign category mix over the term of the lease to ensure the proposition remains relevant for customers and ahead of changing trends. The payback period is less than two years and a long-term contract has been secured.

In Portland, the new East Bank Market store opened during the period which is performing ahead of expectations. This store has a payback period of less than two years. Both these examples demonstrate that the Group has a clear ability to win in prime locations, adapt formats and drive attractive and profitable returns.

The division's new store pipeline is strong and following a review, these new stores will meet the Group's investment hurdle rates. We expect a good tender pipeline of new stores in the second half of the year.

InMotion

InMotion LFL revenue decreased by 4% in the first half of the year. In the first 7 weeks of trading, LFL revenue is up 3% as a result of increased store footfall in the period.

InMotion is highly regarded by landlords. However, this segment is in like-for-like decline and it is now essential that the focus turns to the commercial proposition, reducing the number of product lines and improving availability while reducing working capital.

In the first half of the year, 9 stores were closed with 6 new store openings across Dallas, Denver, Detroit and Albuquerque airports, primarily as part of wider retail packages within these airports. Moving forward, new store openings will be limited, with any new InMotion stores being considered only as part of strategically important tender packages with strong returns.

The review of the existing store portfolio is ongoing and is expected to complete in the second half of the year. This review includes undertaking a deeper diagnostic of the estate to determine the factors that need to be in place for these stores to succeed.

Over time, the number of InMotion stores will decline by around 20%-30%, with store numbers reducing below 100 in the medium-term.

Despite store closures, there is an opportunity to increase the margin over time with the best performing stores retained, range optimisation complete and a strengthened operational performance.

Resorts

LFL revenue in Resorts decreased by 6% in the period, driven by the continued reduction in Las Vegas visitor numbers. This trend has continued in the first 7 weeks of the second half with Resorts down 8%.

As announced at the Group's Preliminary Results in December 2025, there is no plan to open any new stores in Resorts. Decisive action has been taken to begin a controlled exit of the fashion stores and to reduce the number of speciality stores.

In the first half of the year, 8 Resort stores were closed: 3 fashion and 5 speciality where the leases were short or there were opportunities to exit without penalty. An additional 8 Fashion stores will be closed in the balance of year. There are a further 4 fashion stores where discussions are ongoing with landlords to look to reformat these stores and 10 stores where discussions are ongoing with third parties. We aim to largely complete the exit of the fashion stores this year.

Other format options or controlled exit options for the remaining speciality stores, where the lease arrangements run over the medium term, are under review.

The Hotel Convenience and Welcome to Las Vegas stores are profitable and cash generative and these will continue to be optimised.

Revenue growth by key channels

	Revenue (% change) 6 months to 28 February 2026
	Total vs 2025	Total at constant currency4 vs 2025	LFL2 vs 2025
Air	9%	15%	3%
Resorts	(11)%	(6)%	(6)%
Total North America	5%	10%	1%

 

During the period, 18 new stores were opened and 18 stores were closed.

There are over 50 stores which have been won and are yet to open.

Including the 18 store openings in the period, the North America division now operates from 282 stores in Air (including 120 InMotion stores), and 80 stores across Resorts and Rail.

Strengthening the operating model has been a key area of focus in the period and the Group's remediation plan has progressed. Global accounting policies are being implemented across all divisions with associated operational systems and controls. Key financial reporting controls have been embedded into the North America month end processes and commercial finance capabilities have been strengthened.

REST OF THE WORLD AND OTHER

The Rest of the World division delivered total revenue growth of 8% on a constant currency basis with LFL revenue up 6%. The division delivered a Headline trading loss² of £4m (2025: Headline trading profit of £2m). This reflects a challenging performance in some locations and the inflationary pressures on staff and logistics costs. These locations are part of the current divisional review.

Further investment will be targeted where the business already has scale and expertise, ensuring profitability is strengthened in the largest-serving markets, with a particular focus in Ireland, Spain and Australia.

During the first half, new investments were agreed in the Republic of Ireland which is an important market for the division. This will also see the introduction of the successful one-stop-shop format into Dublin, Cork and Shannon airports. New stores were also opened at Melbourne and Tenerife airports.

Managing the division's store portfolio is also a key priority which will result in exiting and reducing exposure for the Group in sub-scale markets as contracts expire or through active portfolio management. During the first half, 4 uneconomic stores were closed at Dusseldorf airport, and, more recently, the Group has exited its uneconomic Norwegian business. The Group continues to explore the potential to withdraw from other uneconomic markets while also assessing the possibility to move to a franchise model in some locations.

Looking ahead to the next phase of growth, the Group will focus on a less capital intensive franchise-led model, an area where there is already considerable experience. This approach will enable expansion across high-potential markets where there is an opportunity to extend the Group's presence.

Consistent with the less capital-intensive franchise led model, during the first half we opened a further franchise store in the Philippines, and 2 further stores opened at the start of H2 in Saudi Arabia. An additional 5 stores were opened in Malaysia under a joint venture agreement. By working in partnership with experienced local operators, it is possible to leverage their local expertise alongside the Group's space and promotional management to optimise performance.

The ROW division now has 324 stores open. Of these, 58% are directly-run, 11% are joint venture and 31% are franchise.

CultPens.com delivered a good performance in the period, in line with the Group's expectations.

Technical planning assumptions FY26 (Pre IFRS 16 basis)

Central costs	£30-£32m
Interest charges	£33-£35m
Effective tax rate2	c.25%
Non-underlying2	c.£50m
Capex	c.£90m
Headline net debt2	c.£420m

 

Total stores

	6 months ended 28 February 2026
No. of stores	UK	North America	ROW	Total
At 31 August 2025	593	362	325	1,280
Opened	7	18	11	36
Closed	(11)	(18)	(12)	(41)
Net (closures)/openings	(4)	-	(1)	(5)
At 28 February 2026	589	362	324	1,275
Closures:
Relocations / loss-makers	(6)	(5)	-	(11)
Landlord redevelopment	(5)	(1)	(1)	(7)
Lease expiries	-	(12)	(11)	(23)
	(11)	(18)	(12)	(41)

During the period, 36 stores were opened. As at 28 February 2026, the Group operated from 1,275 stores (2025: 1,280). 41 stores were closed in the period. The Group's focus will remain on opening more profitable stores and better quality space. In the current financial year, it is anticipated that a further c.30-40 stores will close with c.10-20 new store openings.

 

ENVIRONMENTAL AND SOCIAL GOVERNANCE ('ESG')

The Group continues to make solid progress against its main sustainability commitments and it is on track to meet its current net zero targets to reduce Scope 1 and 2 emissions by 80% by 2030 and have 75% of supply chain emissions covered by science-based carbon reduction targets by 2027.

Work on packaging reduction and the transition to more recyclable options continues, aligned to producer responsibility legislation in all UK and European markets.

Our colleague networks continue to grow, providing a channel for colleague-led engagement on our diversity and inclusion initiatives and employee policies and processes.

Our charity partnership with the National Literacy Trust continues to support children's literacy and Miracle Flights supports children who need to travel to receive life-changing medical care.

WHSmith is the top performing speciality retailer in Morningstar's Sustainalytics ESG Benchmark and has been awarded an ESG rating of AAA from MSCI.

FINANCIAL REVIEW

	IFRS			Headline pre-IFRS 162
£m	Feb 2026	Feb 2025 Restated1	Feb 2026		Feb 2025 Restated1
Trading profit2
UK	38	40	34		40
North America	9	8	2		5
Rest of the World and Other	(5)	5	(4)		2
Group trading profit - continuing operations2	42	53	32		47
Unallocated central costs	(15)	(14)	(15)		(14)
Group operating profit before non-underlying items - continuing operations2	27	39	17		33
Net finance costs	(25)	(22)	(14)		(12)
Group profit before tax and non-underlying items - continuing operations2	2	17	3		21
Non-underlying items2	(27)	(21)	(28)		(20)
Group profit before tax - continuing operations2	(25)	(4)	(25)		1
Income tax charge	4	(1)	4		(1)
Loss for the year - continuing operations	(21)	(5)	(21)		-
Loss for the year - discontinued operations	(2)	(42)	(2)		(35)
Loss for the year - total operations	(23)	(47)	(23)		(35)
Attributable to:
Equity holders of the parent	(27)	(49)	(27)		(37)
Non-controlling interests	4	2	4		2
	(23)	(47)	(23)		(35)

Total Headline trading profit² in the period was £32m (2025¹: £47m) of which the largest division, UK, generated a Headline trading profit² of £34m (2025: £40m). North America delivered £2m (2025¹: £5m) and ROW a Headline trading loss² of £4m (2025: Headline trading profit of £2m).

The Group generated a Headline profit before tax and non-underlying items² of £3m (2025¹: £21m).

 

Net finance costs - Continuing operations

			Headline
	IFRS		pre-IFRS 162
£m	Feb 2026	Feb 2025 Restated1	Feb 2026	Feb 2025 Restated1
Interest payable on bank loans and overdrafts	7	5	7	5
Interest on convertible bonds	8	7	8	7
Interest income on joint venture loans	(1)	-	(1)	-
Interest on lease liabilities	11	10	-	-
Net finance costs	25	22	14	12

Headline net finance costs (pre-IFRS 16) in the period were £14m (2025¹: £12m). This includes cash outflows of £9m (2025: £7m) and £4m (2025: £4m) relating to the non-cash debt accretion charge from the convertible bond which has a fixed coupon of 1.625%.

Lease interest of £11m arises on lease liabilities recognised under IFRS 16, bringing the total net finance costs on an IFRS 16 basis to £25m (2025¹: £22m).

Tax

The effective tax rate² in the period was 16% (2025¹: 19%) on profit before tax and non-underlying items². Net corporation tax receipts in the period were £5m (2025: payments of £17m). Based on current legislation, it is expected that the effective tax rate² in the current financial year will be around 25%.

Earnings per share

Calculation of Headline diluted earnings per share - Continuing operations² 

	Headline
	pre-IFRS 162
£m - Unless otherwise stated	Feb 2026	Feb 2025 Restated1
Headline profit before tax9	3	21
Income tax expense9	-	(4)
Headline profit for the year9	3	17
Attributable to non-controlling interests	(4)	(2)
Headline profit for the year attributable to equity holders of WH Smith PLC9	(1)	15
Weighted average shares in issue (diluted) (no. of shares - millions)10	126	130
Headline diluted EPS2	(0.8)p	11.5p

The above measures are calculated on a pre-IFRS 16 basis.  

Headline diluted EPS² was (0.8)p (2025¹: 11.5p).

EPS calculated on an IFRS 16 basis is provided in Note 7, and a reconciliation between the IFRS 16 and pre-IFRS 16 earnings per share is provided in Note A4 to the Glossary on pages 54 to 55.

The diluted weighted average number of shares in issue used in the calculation of Headline diluted EPS² assumes that the convertible bond is not dilutive and reflects the number of shares held by the ESOP Trust.

Profit attributable to non-controlling interests primarily represents the joint venture partner share of profit in relation to airport contracts in the USA. For the six months ended 28 February 2026, the profit attributable to non-controlling interests was £4m (2025¹: £2m) and is determined based on operating financial performance of the associated stores prior to allocation of administrative costs.

 

⁹ Before non-underlying items

¹⁰ Where profit attributable to equity holders represents a loss, the basic weighted average shares in issue are used in the diluted EPS calculation. Refer to Note 7 for further details.

 

Non-underlying items²

The Group has chosen to present a measure of profit and earnings per share that excludes certain items, which are considered non-underlying and exceptional due to their size, nature or incidence, or are not considered to be part of the normal operations of the Group. Non-underlying items in the year in the Income statement are detailed in the table below.

		IFRS		Headline pre-IFRS 162
£m	Ref.	Feb 2026	Feb 2025 Restated1	Feb 2026	Feb 2025 Restated1
Items included in the Income statement
Amortisation of acquired intangible assets	(1)	(1)	(2)	(1)	(2)
Impairment of non-current assets	(2)	(16)	(6)	(11)	(5)
Provisions for onerous contracts	(2)	-	(1)	(4)	(1)
Transformation programmes - supply chain, IT and operational efficiencies	(3)	(6)	(12)	(6)	(12)
Costs relating to the investigation into accelerated recognition of supplier income in North America	(4)	(3)	-	(3)	-
Impairment of other receivables	(5)	(2)	-	(2)	-
IFRS 16 remeasurement gains		2	-	-	-
Other non-underlying costs		(1)	-	(1)	-
Total non-underlying items recognised in the income statement - continuing operations		(27)	(21)	(28)	(20)

 

(1) Amortisation of acquired intangible assets

Non-cash amortisation of acquired intangible assets of £1m (2025: £2m) primarily relate to the MRG and InMotion brands.

(2) Impairment of non-current assets and provision for onerous contracts

The Group has carried out an assessment for indicators of impairment of non-current assets across the store portfolio.

Where an indicator of impairment has been identified, an impairment review has been performed to compare the value-in-use of cash generating units, based on management's assumptions regarding likely future trading performance, aligned with the latest Board approved forecast, to the carrying value of the cash-generating unit as at 28 February 2026.

As a result of this exercise, a non-cash charge of £11m (2025¹: £5m) was recorded within non-underlying items for impairment of non-current assets on a pre-IFRS 16 basis, of which £10m (2025¹: £5m) relates to property, plant and equipment and £1m (2025¹: £nil) relates to intangible assets (primarily software). On an IFRS 16 basis, the total impairment charge of £16m (2025¹: £7m) comprises £11m property, plant and equipment (2025¹: £5m), £1m intangible assets (2025¹: £nil) and £4m (2025¹: £1m) right-of-use assets.

A charge of £4m on a pre-IFRS 16 basis (2025¹: £1m; IFRS 16 basis £nil; 2025¹: £1m) has been recognised in the income statement to provide for the unavoidable costs of continuing to service a number of non-cancellable supplier and property contracts where the space is vacant, a contract is loss-making or currently not planned to be used for ongoing operations. This provision will be utilised in line with the profile of the contracts to which they relate.

Of the total charge for impairment and onerous contracts, on a pre-IFRS 16 basis, £1m is attributable to the UK operating division, £8m to North America and £6m to Rest of the World and Other. Impairment charges in the North America and Rest of the World and Other operating divisions have principally arisen due to a lower trading outlook in certain individual stores across these regions.

(3) Transformation programmes

Costs of £6m (2025: £12m) have been classified as non-underlying in relation to a number of Board-approved programmes relating to IT transformation (£4m; 2025: £3m), operational efficiencies (£2m; 2025: £7m) and supply chain (£nil; 2025: £2m).

The IT transformation programme includes costs relating to upgrading core IT infrastructure, data migration and investment in data security, store systems modernisation and other significant IT projects. These strategic projects will provide additional stability, longevity and operational benefits. Costs in FY26 are expected to be around £7m and approximately £5m in FY27 before the current programme completes.

The operational efficiencies programme commenced in 2025 and costs include head office restructuring and transformation costs across all segments. This programme will deliver a more efficient operating model to support the Group's strategic objectives. The current programme will largely complete in FY26 and we would expect the remaining cost for these items to be around £3-4m in the remainder of the financial year.

These multi-year programmes are reported as non-underlying items on the basis that they are significant in quantum, relate to a Board-approved programme and to aid comparability from one period to the next.

(4) Costs associated with the investigation into accelerated recognition of supplier income in North America

Costs incurred during the period include £3m of professional fees in relation to the investigation into accelerated recognition of supplier income in North America including costs of the investigation, remediation and regulatory related costs. We expect further costs in FY26 in the region of £3-4m.

(5) Impairment of other receivables

The Group's other receivables include amounts due from non-controlling interest equity shareholders in certain of the Group's North America subsidiaries which relate to contributions owed towards property, plant and equipment construction for stores and are received in accordance with the cash requirements of the subsidiary. Certain of these contributions are no longer considered to be recoverable based on the expected credit loss that considers the counterparty's ability to pay, which reflects the financial outlook of the associated stores. Such expected credit losses of £2m (2025: £nil) are recognised within non-underlying items where an impairment charge for store non-current assets has also been recognised within non-underlying items.

A tax credit of £4m (2025¹: £3m) has been recognised in relation to the above items (£4m pre-IFRS 16 (2025¹: £3m)) from continuing operations.

Cash flow

Free cash flow² reconciliation - Continuing operations

			pre-IFRS 162
£m				Feb 2026	Feb 20251
Headline Group operating profit before non-underlying items2				17	33
Depreciation, amortisation and impairment (pre-IFRS 16)11				27	25
Non-cash items				4	4
Headline EBITDA2, 11				48	62
Capital expenditure7				(50)	(38)
Working capital (pre-IFRS 16)11				(54)	(72)
Net tax refunded/(paid)				5	(17)
Net finance costs paid (pre-IFRS 16)11				(10)	(7)
Free cash flow2				(61)	(72)

The Group generated a Headline EBITDA² of £48m in the period (2025¹: £62m) demonstrating the cash generative nature of the business. Capex was £50m (2025¹: £38m⁷) as the Group continued to invest in new stores, IT and energy efficient chillers and other store equipment. As expected, there was a working capital outflow⁸ of £54m in the period (2025¹: outflow⁸ of £72m), which results from a one-off payables timing headwind linked to one of our large franchisor partners at the end of last year, new store openings, and the seasonality of the business. In total, there was a free cash outflow of £61m (2025¹: £72m).

 

¹¹ Excludes cash flow impact of non-underlying items

 

Capex was £50m (2025¹: £38m⁷) which includes the additional spend from opening 36 stores around the world.

£m	Feb 2026	Feb 20251,7
New stores and store development	42	23
Refurbished stores	6	8
Systems	2	4
Other	-	3
Total capital expenditure	50	38

 

Reconciliation of Headline net debt²

Headline net debt² is presented on a pre-IFRS 16 basis. See Note 8 and Note A8 of the Glossary for the impact of IFRS 16 on net debt.

As at 28 February 2026, the Group had Headline net debt² of £496m comprising convertible bonds of £325m and net overdrafts of £171m (31 August 2025: £390m, convertible bonds of £320m and net overdrafts of £70m).

 

	Headline2
	pre-IFRS 16
	6 months to		Year ended
£m	Feb 2026	Feb 2025	Aug 20251
Opening Headline net debt2	(390)	(371)	(371)
Free cash flow2	(61)	(72)	63
Non-underlying items2 - continuing operations	(22)	(18)	(38)
Dividends paid	(8)	(29)	(43)
Purchase of own shares for cancellation	-	(23)	(50)
Receipt of pension surplus	-	75	75
Non-underlying items2 - discontinued operations	(10)	(4)	(25)
Other	(5)	(12)	(1)
Closing Headline net debt2	(496)	(454)	(390)
Net overdraft	(171)	(139)	(70)
Convertible bond	(325)	(315)	(320)
Headline net debt2	(496)	(454)	(390)

In addition to the free cash flow², the Group had outflows relating to non-underlying items² from continuing operations of £22m mainly relating to transformation projects and costs associated with the investigation into accelerated recognition of supplier income in North America and this includes costs charged in the prior year; the final dividend from 2025 of £8m; and a net cash outflow related to separation costs associated with discontinued operations of £10m.

Subject to investment opportunities, it is expected that Headline net debt² will be in the region of £420m at the end of the year. The increase relates to continuing investment in new stores in North America alongside ongoing transformation costs.

On an IFRS 16 basis, net debt was £1,010m (August 2025: £874m; February 2025: £1,055m), which includes an additional £514m (August 2025: £484m; February 2025: £601m) of lease liabilities.

 

Leverage² - Continuing operations

		pre-IFRS 162
£m			Feb 2026
Headline EBITDA2 - six months to Feb 2026			48
Headline EBITDA2 - six months to Aug 2025			125
Headline net debt2			496
Leverage - multiple			2.9x

 

Leverage² at 28 February 2026 was 2.9x (August 2025¹: 2.1x), comprising Headline net debt² over rolling 12 months of Headline EBITDA², with a seasonal increase relating to the expected higher net debt at February 2026. In the near-term, the Group plans to strengthen the balance sheet through tighter cost control and improved cash generation to reduce leverage below 2.0x.

 

Fixed charges cover² - Continuing operations

	pre-IFRS 162
£m	Feb 2026
Headline net finance costs before non-underlying items 2 (Note A1) - six months to Feb 2026	14
Headline net finance costs before non-underlying items 2 (Note A1) - six months to Aug 2025	14
Headline fixed operating lease charges2 (Note A12) - six months to Feb 2026	131
Headline fixed operating lease charges2 (Note A12) - six months to Aug 2025	121
Total fixed charges	280
Headline EBITDA2 - six months to Feb 2026 (Note A13)	48
Headline EBITDA2 - six months to Aug 2025 (Note A13)	125
Headline fixed operating lease charges2 (Note A12) - six months to Feb 2026	131
Headline fixed operating lease charges2 (Note A12) - six months to Aug 2025	121
Headline EBITDA before Headline fixed operating lease charges2	425
Fixed charges cover2 - times	1.5x

Fixed charges, comprising property operating lease charges and net finance costs, were covered 1.5 times (August 2025¹: 1.6 times) by Headline EBITDA² before Headline fixed operating lease charges.

 

Return on capital employed² - Continuing operations

		pre-IFRS 162
		Feb 2026	Aug 20251
UK		36%	38%
North America		3%	4%
Rest of the World and Other		15%	22%
Group		16%	18%

Return on capital employed² is calculated as the Group operating profit before non-underlying items² as a percentage of operating capital employed and is stated on a pre-IFRS 16 basis. Operating capital employed is calculated as the 12-month average net assets, excluding net debt, retirement benefit surplus/obligation and net current and deferred tax balances.

 

Balance sheet

					Headline2
		IFRS			pre-IFRS 16
£m		Feb 2026	Aug 2025	Feb 20251	Feb 2026	Aug 2025	Feb 20251
Goodwill and other intangible assets		445	447	488	446	449	490
Property, plant and equipment		267	254	321	265	251	313
Right-of-use assets		393	367	467	-	-	-
Investments in joint ventures		2	2	2	2	2	2
Non-current investments		2	4	10	2	4	10
		1,109	1,074	1,288	715	706	815
Inventories		140	148	212	140	148	212
Payables less receivables		(109)	(191)	(141)	(103)	(181)	(128)
Working capital		31	(43)	71	37	(33)	84
Net current and deferred tax asset		31	31	62	30	31	62
Net derivative liability		(1)	-	-	(1)	-	-
Provisions		-	(1)	(17)	(23)	(25)	(30)
Operating assets		1,170	1,061	1,404	758	679	931
Net debt		(1,010)	(874)	(1,055)	(496)	(390)	(454)
Net assets excluding retirement benefit surplus		160	187	349	262	289	477
Retirement benefit surplus		1	1	-	1	1	-
Total net assets		161	188	349	263	290	477

The Group had Headline net assets of £263m, £27m lower than at 31 August 2025. Under IFRS the Group had net assets of £161m (2025¹: £188m).

Events after the balance sheet date

On 10 March 2026, the first extension option on the term loan was exercised taking the maturity date to 24 March 2029. On 11 March 2026, the US private placements were fully drawn.

Total stores by region

No. of stores		At 28 February 2026
UK		589
North America
	Air	282
	Resorts / Rail	80
	Total North America	362
Rest of the World and Other		324
Total		1,275

 

PRINCIPAL AND EMERGING RISKS AND UNCERTAINTIES

The Group's Annual Report and Accounts 2025, a copy of which is available on the Group's website at www.whsmithplc.co.uk, sets out the principal and emerging risks and uncertainties which could impact the Group for the remainder of the current financial year along with mitigating activities relevant to each risk (see Annual Report and Accounts 2025 pages 65 to 71). These include:

•           treasury, financial and credit risk management;

•           economic, political, competitive and market risks;

•           brand standards;

•           key suppliers and supply chain management;

•           store portfolio;

•           business interruption;

•           reliance on key personnel;

•           international expansion;

•           cyber risk, data security and data privacy compliance; and

•           environment and social sustainability.

The Group continues to monitor and respond to the impact of the ongoing conflict in the Middle East with respect to the principal risks listed above.

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulations.

This announcement contains certain forward-looking statements with respect to the operations, performance and financial condition of the Group. By their nature, these statements involve uncertainty since future events and circumstances can cause results to differ from those anticipated. Nothing in this announcement should be construed as a profit forecast. We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

 

WH Smith PLC         

Condensed Group Income Statement

For the 6 months to 28 February 2026

 

		6 months to 28 Feb 2026 (unaudited)				6 months to 28 Feb 2025 restated1 (unaudited)			12 months to 31 Aug 2025 (audited)
£m	Note	Before non-underlying items2		Non-underlying items3	Total	Before non-underlying items2	Non-underlying items3	Total	Before non-underlying items2	Non-underlying items3	Total
Revenue	2	748		-	748	716	-	716	1,553	-	1,553
Group operating profit/(loss) - continuing operations	2,3	27		(27)	-	39	(21)	18	148	(99)	49
Net finance costs	4	(25)		-	(25)	(22)	-	(22)	(46)	(1)	(47)
Profit/(loss) before tax - continuing operations		2		(27)	(25)	17	(21)	(4)	102	(100)	2
Income tax credit/(expense)	5	-		4	4	(4)	3	(1)	(44)	18	(26)
Profit/(loss) for the period - continuing operations		2		(23)	(21)	13	(18)	(5)	58	(82)	(24)
(Loss)/profit for the period - discontinued operations		-		(2)	(2)	13	(55)	(42)	24	(137)	(113)
Profit/(loss) for the period - total operations		2		(25)	(23)	26	(73)	(47)	82	(219)	(137)
Attributable to equity holders of the parent	(2)		(25)		(27)	24	(73)	(49)	75	(219)	(144)
Attributable to non-controlling interests	4		-		4	2	-	2	7	-	7
		2		(25)	(23)	26	(73)	(47)	82	(219)	(137)
Loss per share - continuing operations
Basic	7				(20.0)			(5.5)			(24.4)
Diluted	7				(20.0)			(5.5)			(24.4)
Loss per share - total operations
Basic	7				(21.6)			(38.3)			(113.4)
Diluted	7				(21.6)			(38.3)			(113.4)

 

¹ Comparative periods have been restated to correct the accelerated supplier income recognition and inventory related items in the North

America division (refer to Note 1b for further details) and to separately disclose results from discontinued operations (refer to Note 1a for further details).

² Alternative performance measure. The Group has defined and explained the purpose of its alternative performance measures in the Glossary on page 48.

³ See Note 3 for an analysis of non-underlying items. See Glossary on page 48 for a definition of Alternative Performance Measures.

 

 

WH Smith PLC         

Condensed Group Statement of Comprehensive Income

For the 6 months to 28 February 2026

 

£m		6 months to 28 Feb 2026 (unaudited)	6 months to 28 Feb 2025 restated1 (unaudited)	12 months to 31 Aug 2025 (audited)
Loss for the period		(23)	(47)	(137)
Other comprehensive income/(loss):
Items that may be reclassified subsequently to the income statement:
Gains on cash flow hedges
-       Net fair value gains		-	1	-
Exchange differences on translation of foreign operations		-	21	(9)
Other comprehensive income/(loss) for the period, net of tax		-	22	(9)
Total comprehensive loss for the period		(23)	(25)	(146)
Attributable to equity holders of the parent		(28)	(29)	(150)
Attributable to non-controlling interests		5	4	4
		(23)	(25)	(146)
Total comprehensive (loss)/income arising from:
Continuing operations		(21)	17	(33)
Discontinued operations		(2)	(42)	(113)
		(23)	(25)	(146)

 

 

¹ Comparative periods have been restated to correct the accelerated supplier income recognition and inventory related items in the North

America division (refer to Note 1b for further details) and to separately disclose results from discontinued operations (refer to Note 1a for further details).

 

WH Smith PLC

Condensed Group Balance Sheet

As at 28 February 2026

 

£m	Note		At 28 Feb 2026 (unaudited)	At 28 Feb 2025 restated1  (unaudited)	At 31 Aug 2025 (audited)
Non-current assets
Goodwill	11		401	428	402
Other intangible assets	11		44	60	45
Property, plant and equipment	11		267	321	254
Right-of-use assets	11		393	467	367
Investments in joint ventures			2	2	2
Non-current investments			2	10	4
Retirement benefit surplus			1	-	1
Deferred tax assets			19	43	16
Trade and other receivables			36	25	25
			1,165	1,356	1,116
Current assets
Inventories			140	212	148
Trade and other receivables			77	109	102
Current tax receivable			19	19	23
Cash and cash equivalents	8		48	39	71
			284	379	344
Total assets			1,449	1,735	1,460
Current liabilities
Trade and other payables			(222)	(275)	(318)
Bank overdrafts and other borrowings	8		(544)	(178)	(461)
Lease liabilities	8		(99)	(120)	(90)
Derivative financial liabilities			(1)	-	-
Current tax payable			-	-	(1)
Short-term provisions			-	(2)	(1)
			(866)	(575)	(871)
Non-current liabilities
Bank loans and other borrowings	8		-	(315)	-
Long-term provisions			-	(15)	-
Lease liabilities	8		(415)	(481)	(394)
Deferred tax liabilities			(7)	-	(7)
			(422)	(811)	(401)
Total liabilities			(1,288)	(1,386)	(1,272)
Total net assets			161	349	188
Shareholders' equity
Called up share capital			28	28	28
Share premium			316	316	316
Capital redemption reserve			14	14	14
Translation reserve			(16)	10	(15)
Other reserves			(254)	(267)	(254)
Retained earnings			37	219	69
Total equity attributable to equity holders of the parent			125	320	158
Non-controlling interests			36	29	30
Total equity			161	349	188

 

¹ Comparative periods have been restated to correct the accelerated supplier income recognition and inventory related items in the North America division and to reclassify certain receivables from current to non-current (refer to Note 1b for further details).

 

WH Smith PLC                                                               

Condensed Group Cash Flow Statement

For the 6 months to 28 February 2026

		6 months to		12 months to
£m	Note	28 Feb 2026 (unaudited)	28 Feb 2025 restated1 (unaudited)	31 Aug 2025 (audited)
Operating activities
Cash generated from continuing operations	9	20	99	330
Interest paid2		(18)	(17)	(32)
Financing arrangement fees		(1)	-	(3)
Income taxes refunded/(paid)		5	(17)	(28)
Net cash (outflow)/inflow from operating activities - discontinued operations		(10)	27	9
Net cash (outflow)/inflow from operating activities		(4)	92	276
Investing activities
Purchase of property, plant and equipment		(46)	(38)	(77)
Purchase of intangible assets		(4)	(1)	(4)
(Payment)/receipt on settlement of financial instruments		-	(6)	7
Proceeds received from investments		2	3	8
Net cash inflow/(outflow) from investing activities - discontinued operations		1	(12)	(3)
Net cash outflow from investing activities		(47)	(54)	(69)
Financing activities
Dividends paid		(8)	(29)	(43)
Purchase of own shares for cancellation		-	(23)	(50)
Distributions to non-controlling interests		(3)	(4)	(7)
Net drawdown on borrowings	8	78	61	24
Capital repayments of obligations under leases3	8	(39)	(41)	(86)
Net cash outflow from financing activities - discontinued operations		-	(19)	(30)
Net cash inflow/(outflow) from financing activities		28	(55)	(192)
Net (decrease)/increase in cash and cash equivalents in the period		(23)	(17)	15
Opening cash and cash equivalents		71	56	56
Closing cash and cash equivalents		48	39	71

¹ Comparative periods have been restated to separately disclose results from discontinued operations (refer to Note 1a for further details) and to reclassify the Receipt from settlement of financial instruments from Operating activities to Investing activities.

² Includes interest payments of £9m on lease liabilities (28 February 2025: £10m; 31 August 2025: £16m) for continuing operations. Interest payments on lease liabilities for discontinued operations were £nil (28 February 2025: £2m; 31 August 2025: £4m).

³ Capital repayments of obligations under leases for discontinued operations were £nil (28 February 2025: £19m; 31 August 2025: £30m).

 

WH Smith PLC         

Condensed Group Statement of Changes in Equity

For the 6 months to 28 February 2026

 

 

£m	Called up share capital and share premium	Capital redemption reserve	Translation reserves	Other reserves2	Retained earnings	Total equity attributable to equity holders of the parent	Non-controlling interest	Total equity
Balance at 1 September 2025	344	14	(15)	(254)	69	158	30	188
(Loss)/profit for the period - total operations	-	-	-	-	(27)	(27)	4	(23)
Other comprehensive (loss)/income:
Exchange differences on translation of foreign operations	-	-	(1)	-	-	(1)	1	-
Total comprehensive (loss)/income for the period	-	-	(1)	-	(27)	(28)	5	(23)
Employee share schemes	-	-	-	-	3	3	-	3
Dividend paid (Note 6)	-	-	-	-	(8)	(8)	-	(8)
Distributions to non-controlling interest	-	-	-	-	-	-	(3)	(3)
Non-cash movement on non-controlling interests	-	-	-	-	-	-	4	4
Balance at 28 February 2026 (unaudited)	344	14	(16)	(254)	37	125	36	161
Balance at 1 September 2024 - restated3	345	13	(9)	(268)	315	396	26	422
(Loss)/profit for the period - total operations1	-	-	-	-	(49)	(49)	2	(47)
Other comprehensive income:
Cash flow hedges	-	-	-	1	-	1	-	1
Exchange differences on translation of foreign operations	-	-	19	-	-	19	2	21
Total comprehensive (loss)/income for the period1	-	-	19	1	(49)	(29)	4	(25)
Employee share schemes	-	-	-	-	5	5	-	5
Dividend paid (Note 6)	-	-	-	-	(29)	(29)	-	(29)
Share repurchase	(1)	1	-	-	(23)	(23)	-	(23)
Distributions to non-controlling interest	-	-	-	-	-	-	(4)	(4)
Non-cash movement on non-controlling interests	-	-	-	-	-	-	3	3
Balance at 28 February 20251 (unaudited)	344	14	10	(267)	219	320	29	349
Balance at 1 September 2024 - restated1	345	13	(9)	(268)	315	396	26	422
(Loss)/profit for the year - total operations	-	-	-	-	(144)	(144)	7	(137)
Other comprehensive loss:
Exchange differences on translation of foreign operations	-	-	(6)	-	-	(6)	(3)	(9)
Total comprehensive (loss)/income for the year	-	-	(6)	-	(144)	(150)	4	(146)
Employee share schemes	-	-	-	-	5	5	-	5
Dividends paid (Note 6)	-	-	-	-	(43)	(43)	-	(43)
Share repurchase	(1)	1	-	-	(50)	(50)	-	(50)
Distributions to non-controlling interest	-	-	-	-	-	-	(7)	(7)
Non-cash movement on non-controlling interests	-	-	-	-	-	-	7	7
Disposals of businesses	-	-	-	14	(14)	-	-	-
Balance at 31 August 2025 (audited)	344	14	(15)	(254)	69	158	30	188

 

¹ Comparative periods have been restated to correct the accelerated supplier income recognition and inventory related items in the North America division and to reclassify certain receivables from current to non-current (refer to Note 1b for further details).

² Other reserves includes Revaluation reserve of £2m (February 2025 and August 2025: £2m), ESOP reserve of £(16)m (February 2025 and August 2025: (£(25)m), convertible bond reserve of £40m (February 2025 and August 2025: £40m), hedging reserve of £nil (February 2025: £1m; August 2025: £nil) and Other reserves of £(280)m (February 2025: £(285)m; August 2025: £(271)m). The 'Other' reserve includes reserves created in relation to the historical capital reorganisation and proforma restatement of £(238)m (February 2025 and August 2025: £(238)m), the demerger from Smiths News PLC in 2006 of £69m (February 2025 and August 2025: £69m) and cumulative amounts relating to employee share schemes of £(111)m (February 2025: £(116)m; August 2025: £(102)m).

³ Restated to correct the accelerated supplier income recognition and inventory related items in the North America division resulting in a reduction to retained earnings of £20m and non-controlling interest of £4m. Refer to Note 1b of the Group's Annual Report and Accounts for further details.