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W H Smith has announced a rise in profits across both its Travel and High Street stores, despite another sales drop across the group.
Like-for-like sales for books were 10% down year on year in the 12 months to end August 2013, though this was reduced to 6% if Fifty Shades of Grey and its sequels were stripped out.
Total pre-tax profit for the group for the year was £108m, up 6% from the previous year, where pre-tax profit was £102m.
Group profit from trading operations was up 4% from £117m to £122m for the group. W H Smith Travel stores saw the greatest growth, with profit up 5% from £63m to £66m, while the High Street's trading profit grew 4% from £54m to £56m.
However, sales have dropped off in both halves of the business, with total group sales and like-for-like sales down 5%. Total sales at the Travel stores were flat, with a 4% fall in like-for-like sales, whole total sales in the High Street branches were down 7%, with like-for-like sales down 6%.
The company has announced an expansion of its Travel business, with new units preparing to open in locations including Malaysia, Fiji, India, Russia and Azerbaijan.
W H Smith also announced a £50m share buyback programme, having now completed the £50m share buyback scheme announced in August 2012. It has also increased its target for cost savings across the High Street stores, aiming to save £22m over the next three years.
Stephen Clarke, group chief executive, said: "We continue to deliver on our strategy with a strong performance and good profit growth in both businesses. Travel increased profit to £66m and in High Street profit increased to £56m. The Group remains highly cash generative enabling us to invest in our businesses and in new opportunities, whilst returning cash to shareholders, including a further £50m share buyback scheme announced today."
He added: "Looking to the year ahead, we continue to plan cautiously in an uncertain environment, however we are a resilient business and are well positioned for continued growth in both the UK and internationally."
Over the year, 30 new W H Smith Travel stores opened, taking the total to 579 units in the UK, while internationally, 40 new units opened, giving a total of 94 shops abroad, with 47 yet to open. The growth mainly came in airports and hospitals, with eight stores opening in each, with more in railway stations, motorway service stations and workplaces. The group plans to open in more hospitals and workplaces, as well as Heathrow's new Terminal 2.
The group also opened a new W H Smith Express store, and three Zoodle stores aimed at children in Manchester Airport and Melbourne Airport. Partnerships are also being made, with two W H Smith M&S Simply Food units open in Salford Hospital and Manchester Royal Infirmary, and more planned. W H Smith is also planning trialling a partnership with the Musgrave Group, the owner of Londis and Budgens, to trial a convenience offer in railway stations, hospitals and airport arrivals areas.
Four new High Street stores opened, bringing their total to 615. The company said it has created 150 Kobo shops in the past year, and also announced a a new five-year contract with the Post Office Limited to continue operating 82 Post Office branches, while 16 new Post Office branches are planned to open W H Smith stores.