WH Smith (SMWH) – phenomenal performance, how do they do it?
With its origins going back to the 1790s this business continues to deliver materially to shareholders. It offers an object lesson in efficient management of retail space and capital delivering terrific returns to shareholders – an amazing business that’s worth studying, shorters look out!
Results for the year ending 31st August 2015 offered the usual excellent cash delivery and growth in earnings from a broadly flat top line. While group revenue was only up 1.46% to £1.178bn, profit before tax rose 8% to £121m and diluted earnings per share were up 13% to 85.6p. Trading profit through the High Street stores was up a modest 2% to £59m but the Travel business continues to expand with trading profit up 10% to £80m. Group operating profit of £124m has resulted in free cash flow of a whopping £109m. This supports a further share buyback of…