Wed Sep 11 09:33:28 UTC 2024: ## WH Smith Soars on Travel Boom, Announces Share Buyback

**London, UK -** Shares of WH Smith (LON:SMWH) surged 12.3% on Wednesday following the release of strong annual results, driven by a rebound in travel demand. The company reported a 7% increase in overall revenue, with its Travel division leading the charge with a 10% growth.

This performance was attributed to a surge in passenger numbers and successful implementation of new initiatives. The UK market within the Travel division saw a remarkable 12% revenue boost during peak summer trading.

While the High Street segment experienced a 4% decline in revenue, the strong performance of the Travel division offset this impact.

Further bolstering investor confidence, WH Smith announced a £50 million share buyback. This move is supported by a recent £85 million capital return from the pension scheme buyout and the company’s low leverage ratio, expected to be around 1.1x post-transaction.

Analysts at RBC Capital Markets are optimistic about WH Smith’s future, citing a potential acceleration of US Travel sales growth and a sharp improvement in Travel gross margin in the second half of the year. They believe the company can return to a strong long-term travel growth trajectory, generating significant cash returns for shareholders.

The successful completion of the defined benefit pension scheme buyout has not only eliminated future cash contributions but also solidified WH Smith’s financial stability.

RBC remains bullish on WH Smith’s prospects, highlighting its strong growth potential in captive Travel retail markets and the continued strength of travel demand. They believe WH Smith is well-positioned to navigate a challenging consumer environment due to its relatively low basket size.

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