The year to August 2020 was challenging for WH Smith
(Picture: Getty Images)The chief executive of WH Smith has urged the government to extend the business rates holiday as the retailer plunged into the red.
The High Street chain has been hurt by Covid lockdowns and travel restrictions. It has a number of stores at airports and train stations where passenger numbers have significantly fallen this year.
It recorded a statutory pre-tax loss of £226 million for the year to August compared to a £135 million profit the previous year. The underlying loss was £69 million, better than analysts had expected.
Boss Carl Cowling said the High Street business has seen a steady recovery and most of its stores have now reopened. But he added that footfall is still significantly down on the High Street and pre-Covid numbers won’t resume by the end of March when the current business rates holiday ends. He said extending that would assist a number of companies.
Following the virus outbreak WH Smith took a number of actions to focus on cost and cash management.
The included working with landlords to significantly reduce or remove rent payments and to link, as far as possible, with revenue.
The board has decided not to pay a dividend in respect of the financial year ending August 31.
