Menu
22/04/2004
WH Smith brand sales performance 'unacceptable'
WH Smith Group have reported a pre-tax loss of £72 million in the six-month period to February following what the high street store chain labelled as an "unacceptable" performance.
The loss includes a substantial element of costs incurred in £136 million exceptional write-down mainly due to losses made in an expensive and abortive incursion into the US market.
Despite WH Smith's poor interim results for the half-year to February 29, 2004, the group noted that the "operational and financial review of the company," currently being undertaken by Chief Executive Officer Kate Swann, was "progressing well".
In post for five months, Kate Swann confirmed that WH Smith was treating the approach by private equity firm Permira "seriously".
Permira, who will be permitted to examine WH Smiths accounts, has placed a cash offer of 375p per share. A further announcement on the approach is expected to be made by WH Smith.
Swan said three parts in the WH Smith Group were fine, but that the high street operation was "strategically-challenged".
"Publishing delivered a good underlying performance. News Distribution delivered a strong performance. And then within Retail, Travel was fine. The real issues are within the High Street business. And if you split out what the problems are in the High Street business, they divide into two," she said.
"It’s strategically-challenged - people talk about that as being the squeeze between the supermarkets and the specialists. And then there have been a number of areas where they haven’t performed operationally as well as they should have done."
The Group announced 270 jobs losses at the company's head office in London and the Swindon Office, and that outsourcing of jobs was "under consideration".
(SP)
The loss includes a substantial element of costs incurred in £136 million exceptional write-down mainly due to losses made in an expensive and abortive incursion into the US market.
Despite WH Smith's poor interim results for the half-year to February 29, 2004, the group noted that the "operational and financial review of the company," currently being undertaken by Chief Executive Officer Kate Swann, was "progressing well".
In post for five months, Kate Swann confirmed that WH Smith was treating the approach by private equity firm Permira "seriously".
Permira, who will be permitted to examine WH Smiths accounts, has placed a cash offer of 375p per share. A further announcement on the approach is expected to be made by WH Smith.
Swan said three parts in the WH Smith Group were fine, but that the high street operation was "strategically-challenged".
"Publishing delivered a good underlying performance. News Distribution delivered a strong performance. And then within Retail, Travel was fine. The real issues are within the High Street business. And if you split out what the problems are in the High Street business, they divide into two," she said.
"It’s strategically-challenged - people talk about that as being the squeeze between the supermarkets and the specialists. And then there have been a number of areas where they haven’t performed operationally as well as they should have done."
The Group announced 270 jobs losses at the company's head office in London and the Swindon Office, and that outsourcing of jobs was "under consideration".
(SP)
Related UK National News Stories
Click here for the latest headlines.
14 October 2004
'Unacceptable performance' sees WH Smith post big losses
Unacceptable performance, operational shortcomings and tough competition lay the core of a poor year for WH Smith, according to the company's chief executive.
'Unacceptable performance' sees WH Smith post big losses
Unacceptable performance, operational shortcomings and tough competition lay the core of a poor year for WH Smith, according to the company's chief executive.
15 November 2012
Factors Used To Measure Child Poverty To Expand
Factors used to measure child poverty could change to include family breakdown, drug addiction, debt and education results, ministers say. While recent figures showed fewer children in poverty, this was largely because falling wages have narrowed the gap between the poorest and average earners.
Factors Used To Measure Child Poverty To Expand
Factors used to measure child poverty could change to include family breakdown, drug addiction, debt and education results, ministers say. While recent figures showed fewer children in poverty, this was largely because falling wages have narrowed the gap between the poorest and average earners.
25 October 2012
Child Benefit Cap Under Consideration
The work and pensions secretary has announced he is considering a proposal to cap child-related benefits for families at two children. Iain Duncan Smith said stopping the current system, where families get more benefits the more children they have, was part of changes being considered.
Child Benefit Cap Under Consideration
The work and pensions secretary has announced he is considering a proposal to cap child-related benefits for families at two children. Iain Duncan Smith said stopping the current system, where families get more benefits the more children they have, was part of changes being considered.
24 May 2012
Universal Credit Benefit System Brought Forward
Plans to introduce a new single benefit, which the government claims will simplify the welfare system, have been brought forward by six months. The streamlined Universal Credit, which replaces a range of existing benefits, will be trialled in Tameside, Oldham, Wigan and Warrington from next April.
Universal Credit Benefit System Brought Forward
Plans to introduce a new single benefit, which the government claims will simplify the welfare system, have been brought forward by six months. The streamlined Universal Credit, which replaces a range of existing benefits, will be trialled in Tameside, Oldham, Wigan and Warrington from next April.
10 August 2010
Credit Rating Agencies To 'Root Out' Benefits Cheats
Prime Minister David Cameron has unveiled plans for credit ratings firms to be used to identify benefits fraudsters. Mr Cameron announced the plans, which are aimed at cutting fraudulent claim amounting to £1.5 billion a year, in a speech in Manchester.
Credit Rating Agencies To 'Root Out' Benefits Cheats
Prime Minister David Cameron has unveiled plans for credit ratings firms to be used to identify benefits fraudsters. Mr Cameron announced the plans, which are aimed at cutting fraudulent claim amounting to £1.5 billion a year, in a speech in Manchester.
-
Northern Ireland WeatherThis Evening and Tonight:Showers, scattered in the evening, will clear by midnight leaving the night dry with clear spells. Perhaps a touch of ground frost. Cloud will spread east towards morning. Minimum temperature 2 °C.
