Latest news with #CarlCowling
Yahoo
a day ago
- Business
- Yahoo
Activist fund Palliser builds stake in travel retailer WH Smith
A prominent activist investment firm has begun building a stake in WH Smith, the travel retailer, weeks after it sold off its historic high street arm. Sky News has learnt that Palliser Capital has acquired close to 5% of the London-listed company in recent weeks - worth about £65m at the current share price. Sources said the stake was expected to be disclosed publicly at an industry conference on Thursday afternoon. Money latest: Palliser, which recently led an effort to force Rio Tinto, the global mining group, to abandon its London listing in favour of Australia, is said to hold WH Smith's management team - led by chief executive Carl Cowling - in high regard. The investment fund believes, however, that returns to WH Smith shareholders could be bolstered through a series of self-help measures. These included reviewing the travel retailer's leverage targets and capital allocation policy to ensure better use of its balance sheet, according to one source. Improving investor communication and disclosure, and overhauling its executive incentive structure to align it more closely with the interests of shareholders are also on Palliser's wishlist, the source added. Shares in WH Smith are still trading at levels comparable to their lows during the COVID-19 pandemic, when the global travel industry faced near-total shutdown for long periods. The company's depressed share price is not unique to WH Smith, with SSP, the transport catering group, also drawing interest from activists in recent months. WH Smith trades from more than 1,200 travel stores in over 30 countries. "The group operates in structurally advantaged growth markets," it said in April. "Passenger numbers are forecast to grow in air travel by 2.5 times between 2024 and 2050, driven by both population and economic growth. "Investment in airport infrastructure is also increasing across the globe creating more opportunities for airport retailing." Palliser is understood to have identified WH Smith's high growth potential in the US as particularly attractive, and is said to believe that there is scope for its shares to nearly double in value in the next three years. WH Smith's decision to offload its town centre business, which dates back to 1792, was revealed by Sky News in January, and was viewed as a fresg symbol of the British high street's decline. Comprising about 480 stores and roughly 5,000 staff, the unit was sold to Modella Capital, an increasingly prolific investor in retail businesses. The stores are being rebranded under the new name TG Jones. Read more from Sky News:Thousands of Poundland jobs at risk as brand soldBillionaire Blavatnik courted to take Telegraph stakeSpending review's key points at a glance On Thursday afternoon, shares in WH Smith were trading at around £10.60 - down more than 10% over the last year, and giving the company a market capitalisation of £1.36bn. A spokesman for Palliser, which led a successful campaign against the board of London-listed Capricorn Energy, declined to comment. WH Smith has been contacted for comment.
Sky News
a day ago
- Business
- Sky News
Activist fund Palliser builds stake in travel retailer WH Smith
A prominent activist investment firm has begun building a stake in WH Smith, the travel retailer, weeks after it sold off its historic high street arm. Sky News has learnt that Palliser Capital has acquired close to 5% of the London-listed company in recent weeks - worth about £65m at the current share price. Sources said the stake was expected to be disclosed publicly at an industry conference on Thursday afternoon. Palliser, which recently led an effort to force Rio Tinto, the global mining group, to abandon its London listing in favour of Australia, is said to hold WH Smith's management team - led by chief executive Carl Cowling - in high regard. The investment fund believes, however, that returns to WH Smith shareholders could be bolstered through a series of self-help measures. These included reviewing the travel retailer's leverage targets and capital allocation policy to ensure better use of its balance sheet, according to one source. Improving investor communication and disclosure, and overhauling its executive incentive structure to align it more closely with the interests of shareholders are also on Palliser's wishlist, the source added. Shares in WH Smith are still trading at levels comparable to their lows during the COVID-19 pandemic, when the global travel industry faced near-total shutdown for long periods. The company's depressed share price is not unique to WH Smith, with SSP, the transport catering group, also drawing interest from activists in recent months. WH Smith trades from more than 1,200 travel stores in over 30 countries. "The group operates in structurally advantaged growth markets," it said in April. "Passenger numbers are forecast to grow in air travel by 2.5 times between 2024 and 2050, driven by both population and economic growth. "Investment in airport infrastructure is also increasing across the globe creating more opportunities for airport retailing." Palliser is understood to have identified WH Smith's high growth potential in the US as particularly attractive, and is said to believe that there is scope for its shares to nearly double in value in the next three years. WH Smith's decision to offload its town centre business, which dates back to 1792, was revealed by Sky News in January, and was viewed as a fresg symbol of the British high street's decline. Comprising about 480 stores and roughly 5,000 staff, the unit was sold to Modella Capital, an increasingly prolific investor in retail businesses. The stores are being rebranded under the new name TG Jones. On Thursday afternoon, shares in WH Smith were trading at around £10.60 - down more than 10% over the last year, and giving the company a market capitalisation of £1.36bn. A spokesman for Palliser, which led a successful campaign against the board of London-listed Capricorn Energy, declined to comment.
Wales Online
04-06-2025
- Business
- Wales Online
WHSmith 'on track' to start disappearing from High Street this month
WHSmith 'on track' to start disappearing from High Street this month Every branch of WHSmith on High Streets across the country will disappear from the end of this month A WHSmith shop WHSmith today said it is on track to complete the sale of its UK high street chain to Hobbycraft owner Modella Capital by the end of the month. The move will mean the end of WHSmith shops on the High Street. The deal, which was agreed in March and values the high street chain at £76 million, will see the WH Smith name disappear from British high streets and be replaced by brand TGJones. All of the approximately 480 stores and 5,000 staff working for the high street businesses will move under Modella Capital's ownership as part of the deal. In an update ahead of the sale completing, WH Smith said its remaining travel division – which includes shops in airports, train stations and hospitals – had performed well with like-for-like sales up 5% in the quarter to May 31. WHSmith has agreed to sell its UK high street chain to Hobbycraft owner Modella Capital. All the approximately 480 stores and 5,000 staff working for the high street businesses will move under Modella Capital's ownership as part of the deal. The deal will see the WHSmith name disappear from high streets and replaced by brand TGJones. The travel division, which has become the key focus of the group in recent years and also includes shops in hospitals, will not be changing. Article continues below That makes up the bulk of its sales and profits, and has grown to more than 1,200 stores across 32 countries. High street shops have become a 'much smaller part' of the group, its boss said. Group chief executive Carl Cowling said: 'As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WHSmith as we become a business exclusively focused on travel. 'As our travel business has grown, our UK high street business has become a much smaller part of the WHSmith Group. High Street is a good business; it is profitable and cash generative with an experienced and high-performing management team. 'However, given our rapid international growth, now is the right time for a new owner to take the high street business forward and for the WHSmith leadership team to focus exclusively on our travel business. I wish the High Street team every success.' The sale to Modella Capital represents an enterprise value of £76 million on a cash and debt-free basis. Modella Capital specialises in investing in retailers. It has previously put money into chains including Paperchase and Tie Rack. In August, it snapped up arts and crafts retailer Hobbycraft for an undisclosed sum. The WHSmith sale follows a period of uncertainty where a number of potential buyers were believed to be in the running to snap up the historic chain. Article continues below It is understood that private equity groups Hilco and Alteri were among parties to raise interest over a possible takeover move, after WHSmith launched the process late last year.
Yahoo
18-04-2025
- Business
- Yahoo
WH Smith maintains FY25 outlook despite modest H1 profit decline
British retailer WH Smith expects to meet its projected outcomes for the full financial year 2025 (FY25) despite a drop in first half (H1) group profit before tax and non-underlying items, which stands at £45m ($59.63m). The company disclosed a total group revenue of £951m in H1 FY25 - a 3% rise from the £926m reported in the previous fiscal year. The growth is attributed primarily to its travel sector, which saw a 6% increase in revenue. The UK travel segment expanded by 7%, North America by 5% and the Rest of the World category by 15%. But the company's high street segment experienced a 7% dip in revenue, with figures reaching £239m in H1 FY25. Despite this downturn, WH Smith's overall profit from trading operations edged up to £83m from £81m during the comparable timeframe in FY24. Profits within the Travel trading division rose to £63m, with contributions of £40m from the UK and £18m from North America. High street business saw its trading profit decrease to £20m in H1 FY25, from £27m in the corresponding period of the previous year. The company also reported a diluted loss per share of 33.6p - a sharp contrast to the earnings per share of 13p in H1 FY24. In March 2025, WH Smith completed an agreement to divest its UK high street branch to Modella Capital for £76m on a cash and debt-free basis. The move followed January 2025 announcements that the retailer was exploring strategic alternatives for its UK high street business, including potential sale options. WH Smith group chief executive Carl Cowling stated: "The group has had a good first half with consistent like-for-like growth across all our Travel businesses, and we are well-positioned for the peak summer trading period. 'Our UK Travel business has had a strong half with trading profit 8% ahead of last year. In North America, we are beginning to see the benefits of our work to re-engineer our space and improve our retail offer, with like-for-like revenue growth of 3% in the period. We continue to win new space, and I am delighted to announce that we have recently secured a significant contract at a major East Coast airport.' The company has confirmed that the second half of FY25 has started positively. 'We are mindful of the increased level of geopolitical and economic uncertainty. However, given the resilient nature of our business, we are well-positioned to benefit from the growth opportunities in global travel retail,' Cowling added. The company anticipates opening more than 60 stores within FY25. These are among more than 90 new store agreements yet to be realised. This includes 30 openings from H1 and an expected closure of 50 stores as part of a strategy to enhance space quality by eliminating unprofitable locations, small franchise stores and those affected by landlord redevelopment plans. Taking account of these closures, WH Smith projects net openings of around ten stores for the year. "WH Smith maintains FY25 outlook despite modest H1 profit decline" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
The Guardian
16-04-2025
- Business
- The Guardian
Tariffs mean price cuts rather than inflation for UK retail
Donald Trump's tariff war is more likely to lead to price cuts than inflation for many retailers in the UK, according to the boss of WH Smith, as east Asian suppliers seek alternatives to the US. Many economists including those at the Organisation for Economic Co-operation and Development (OECD) have suggested that increased barriers to trade could fuel inflationary pressures across the globe. But Carl Cowling, the chief executive of the retailer, said: 'I don't think there is any logic in why there would be inflation. You could argue it would be the other way around and stock will free up, and it is more likely to be that than inflationary for the UK.' He said the company had not seen any disruption to deliveries from overseas suppliers owing to the rapidly changing news on tariffs. Any changes in sourcing or prices were unlikely to be swift for WH Smith as the group's stock orders were 'locked and loaded' until after Christmas. 'We know exactly what product and packaging we are getting, what we are paying and have got orders committed,' he said. He added that trading in the UK was 'pretty robust' with airline passenger bookings up slightly year-on-year for this summer and 'no softening in numbers at all' in recent weeks despite fears about lagging consumer confidence. But he said retailers 'have got to be a bit mobile' to deal with volatile changes in the trading landscape as the US changes the rules on tariffs from China and elsewhere. He said WH Smith's US business – which operates 258 stores in airports most of which handle domestic flights – bought the majority of its food and snacks locally. But its suppliers of other products, such as headphones and charging cables, were likely to come from countries in Asia, including China, which are now subject to high import tariffs. Cowling said it was likely that suppliers of these small electronics and other goods could shift production from China to Vietnam, the Philippines or other countries with lower tariffs if necessary. 'While we are on top of the detail and mindful of it, I don't thing we are going to be impacted in the way other retailers [selling, for example] fashion might be,' he said. Carling's comments came as WH Smith revealed that profits at its high street business dived by almost a third as sales slid 7% in the run-up to its sale to Hobbycraft owner Modella. The group agreed to sell its 480 high street stores last month to focus on its travel business at railway stations, airports and hospitals amid rising costs and falling visitor numbers in traditional retail destinations. The deal is set to be completed this summer. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion WH Smith's high street profits dived by £7m to £15m as sales fell to £239m in the six months to the end of February. However, it said the wider group was on track to produce full-year profits in line with expectations as its travel business, which operates stores in 32 countries, increased sales by a better-than-expected 6% to £712m and profits rose 12% to £56m. Total group sales edged up by 3% to £951m in the half but it made a pre-tax loss of £25m after exceptional items of £70m, including impairment charges. WH Smith said it had agreements in place to open more than 90 new stores, including more than 70 in North America. It expects to open more than 60 travel stores worldwide this financial year. Cowling said its North American business was seeing the benefit of improvements in its stores and product range: 'We continue to win new space, and I am delighted to announce that we have recently secured a significant contract at a major east coast airport. 'The second half of the financial year has started well, and we remain on track to deliver full-year results in line with market expectations. We are mindful of the increased level of geopolitical and economic uncertainty; however, given the resilient nature of our business, we are well-positioned to benefit from the growth opportunities in global travel retail.'
