WH Smith (LSE:SMWH) said it now expects FY26 Headline Group profit before tax and non-underlying items of £90m-£105m as it takes a cautious outlook amid uncertainty arising from the conflict in the Middle East.
Total Group revenue for the six months to 28 February rose 5% to £748m (2025: £716m), Headline Group profit before tax and non-underlying items fell to £3m (2025: £21m), Headline trading profit was £32m (2025: £47m) and Headline diluted EPS before non-underlying items was a (0.8)p loss (2025: 11.5p), the company said.
By division the UK was up 2% on a total basis, North America grew 10% on a constant currency basis and Rest of the World rose 8% CC, with UK trading profit at £34m (down £6m), North America at £2m (down £3m) and ROW at a £4m loss (down £6m), while North American Travel Essentials and new Heathrow flagship stores were highlighted as performance drivers and Resorts and InMotion remain under active review.
The Board has suspended the dividend to reduce debt and strengthen the Group's financial position and the Group expects full‑year Headline net debt to be around £420m as it prioritises cash, cost discipline and balance‑sheet repair.
The Group said remediation work following the North America accounting issues is progressing and it continues to cooperate with the FCA in relation to the matters announced on 19 November 2025.
"Moving forward, the Board and management team will have a relentless focus on driving cash, cost discipline and strengthening the balance sheet," Leo Quinn, Executive Chair, said.
