WH Smith closes higher by 10% as cash position not as bad as feared

© Reuters.

By Samuel Indyk

Investing.com – UK retailer WH Smith PLC (LON:) closed at its highest level since March on Wednesday, as strong Christmas trading provided investors confidence that the business is in control of its cash burn.

“We generated cash during November and December and ended December with a stronger cash position than anticipated with liquidity of £90m, which is materially ahead of our original plan,” Group CEO Carl Cowling said. Nevertheless, the retailer said they still expect to burn through £15-20m per month in the first quarter of 2021 if restrictions due to the COVID pandemic continue through March.

Although much of the UK remains under restrictions, WH Smith said the majority of its stores in the UK remain open, including 130 hospital stores serving frontline workers in the NHS.


Despite the relatively strong Christmas trading, was lower than the same period in 2019. In December 2020, group revenue was just 67% of the revenue made in the same month of 2019, with travel revenue just 36% for the same period.


On changes since the end of the Brexit transition period, WH Smith said they have not experienced any disruption and do not anticipate that it will have a material impact on its ability to import stock in the year ahead.

At the close, WH Smith shares were up 10.4% at GBP 17.17.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

READ  Wirecard creditors claim at least 12.5 billion euros

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here