Stocks in WH Smith jumped as the retailer reported a surprise full-year profit increase.
Ahead of last year’s £66 million, analysts expected full-year profits of around £74 million, but the chain exceeded expectations pulling in full-year profits of £76 million.
While sales only rose four percent, profits rose 15 percent. The turnaround is accredited to cost-cutting and improved sourcing by Chief Executive Kate Swann. Though the stationary section’s profits were down around a fifth, the chain performed well in railway, airport and motorway stores, driving sales up in books and chocolate.
The retailer attributed its success to its smaller, more everyday goods. "Whilst we're not completely immune, relative to other people we're probably a lot less impacted," said Swann. "Our average transaction value is about £5 … so you won't see us impacted in the same way as some of the big-ticket retailers."
Shares closed at 345 pence, up 7.8 percent.