WH Smith suffers £226MILLION pre-tax LOSS in past year – three times more than analysts feared – after Covid forced 228-year-old High Street name to shut shops and axe up to 1,500 staff
- Retailer fell into deep loss after company was forced to close hundreds of stores
- The travel arm of the business also took a hit due to pandemic travel restrictions
- Company chief executive said retailer has a ‘robust plan’ to ’emerge stronger’
- WH Smith previously revealed up to 1,500 jobs were on the line amid Covid
High street retailed WH Smith has fallen into a £226 million loss in the past 12 months amid the ongoing coronavirus pandemic.
Their pre-tax loss is three times more than analysts feared after forecasters previously described 2020 as a ‘write-off’ year for WH Smith.
But the 228-year-old company’s chief executive has said they have a ‘robust plan’ to help them ’emerge stronger’.
WH Smith said it had lost £226 million before tax in the 12 months to August, a swing from a £135 million profit a year earlier.
Revenue dropped 33% to just over £1 billion, WH Smith revealed on Thursday.
WH Smith said it had lost £226 million before tax in the 12 months to August, a swing from a £135 million profit a year earlier. Pictured, a store in London in August
WH Smith chief executive Carl Cowling said: ‘Since March, we have been heavily impacted by the pandemic.’
Announcing their results, WH Smith chief executive Carl Cowling said the the 228-year-old company’s has a ‘robust plan’ to help them ’emerge stronger’
He added: ‘While passenger numbers continue to be significantly impacted in the UK, our North American business, where 85% of passengers are domestic, is beginning to see some encouraging signs of recovery.
‘In addition, we continue to open new stores in the US and win significant tenders across major US airports.
‘In high street, we had seen a steady recovery and we were well set up both in stores and online as we went into the second lockdown. We currently have 558 stores open.
‘We have a robust plan across all our businesses focusing on cost management and initiatives within our control which support us in the immediate term and position us well to emerge stronger as our markets recover.’
The company was forced to close hundreds of stores across the country as High Street footfall dropped, and its travel business took an especially bad hit.
The retailer predominantly has stores on the high street and also in airports, hospitals and train stations.
Its travel arm, which has boosted the group with rapid growth in recent years, has seen revenues slump on the back of global travel restrictions which are set to continue for the coming months.
The retailer previously announced up to 1,500 jobs could be axed amid warnings from Analysts at Investec who previously said they expected it to deliver a £73 million loss.
Around 300 of its 1,600 stores were kept open after the first lockdown – primarily those in hospitals and with post offices attached – but the chain is expected to be better sheltered this time around after newsagents were given the green light to stay open.
But in August the 228-year-old business said the dramatic fall in sales could force them to axe around 11 per cent of its workforce.
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