WH Smith has revealed it taking a “cautious” outlook in response to the uncertainty arising from the conflict in the Middle East, as the retailer cited lower passenger numbers and weaker consumer confidence.

The company reported that its UK division has delivered flat like-for-like revenue growth in the opening seven weeks of its H2 period, which it said was from disruption to flight schedules to the Middle East.

WH Smith was announcing its trading results for the H1 period, covering the six months to 28 February. This period, just before the more recent US-Israeli attacks on Iran, saw WH Smith report a 5% increase in total group revenue to £748m.

Looking ahead, WH Smith said much of its performance in H2 would depend on the peak summer trading period and that retailer was assuming no immediate improvement in consumer confidence, and that jet fuel supplies can be maintained.

At this stage, WH Smith is forecasting a full-year headline group pre-tax profit before tax between £90m and £105m.

Executive chair at WH Smith, Leo Quinn, said that the company’s immediate focus is to “restore confidence” 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,” Quinn commented. “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.

“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.”

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