EL7.AI
StocksMedium•12 November 2026•
3 min read

WH Smith’s underlying profit falls to £76 million in 2026

Key Facts

1Underlying profit before tax and non-underlying items fell to £76 million in 2026, from £108 million in 2025.
2Revenue rose 5% to £1,625 million, and like-for-like sales grew 2%.
3The company recorded an IFRS loss before tax of £107 million, compared with a £2 million profit in 2025.
4Non-underlying charges totalled £164 million, including about £103 million in impairments.

WH Smith announced its preliminary results on 12 November for the financial year ended 31 August 2026, reporting a fall in the group’s underlying profit before tax and non-underlying items to £76 million, from £108 million in the prior year. The decline came despite higher group revenue, highlighting a gap between sales growth and weaker profits. The company said underlying profit before tax and non-underlying items was in line with its guidance. The results show weaker performance for the full financial year, while the company also recorded a loss before tax under IFRS.

Group revenue rose 5% to £1,625 million, with like-for-like sales growth of 2% during the financial year. But underlying trading profit fell to £130 million from £159 million in the prior year, and its margin declined to 8% from 10%. The figures point to a divergence between revenue growth and contracting trading profitability. According to the results summary, underlying profit before tax and non-underlying items was in line with the company’s guidance, while revenue remained on an annual growth path.

On an IFRS basis, WH Smith recorded a loss before tax of £107 million, compared with a profit of £2 million in 2025. The results included £164 million in non-underlying charges, associated with a cash outflow of £48 million. The charges included about £103 million in impairments, most of them in North America. The company said the impairments formed part of the non-underlying charges recorded during the year. This accounting figure distinguishes the IFRS loss from the group’s reported underlying profit before non-underlying items.

Free cash flow fell to £52 million from £63 million in the prior year. By contrast, underlying net debt declined to £325 million from £390 million, with leverage at 2.0 times. These indicators show an improvement in net debt alongside lower free cash flow. The interim results published in April had provided an earlier picture of the year: the company reported a £2 million loss before tax and non-underlying items in the first half, compared with a £17 million profit in the restated comparative period. In November 2025, the company said Deloitte’s independent review had identified inconsistencies in the recognition of supplier income within its North America division.

In the first ten weeks of the new financial year through 7 November, like-for-like sales were flat, while total revenue at constant currency rose 1%, in line with expectations. The board expected underlying profit before tax and non-underlying items for financial 2027 to be between £75 million and £85 million, in line with current market expectations, according to the published summary. The company set out a profit range for the coming year alongside preliminary sales figures since the period began. The available evidence did not include verified data on the share’s direction in the session when results were announced.