Stationery group WH Smith has said that a “strong performance” for the year meant that the chain reported a rise in pre-tax profits of 8%.

In the year ended August 31st, the group’s travel division experienced a “record year”, seeing profits rise 11%.

Stephen Clarke group chief executive said that the group was “highly cash generative” and that he planned to increase cost savings in the high street division to £21 million over the next three years.
Mr Clarke, added: "The group has delivered a strong performance with EPS up 18% year on year. The distinct strategies for each of our businesses continue to deliver good profit growth.  We had another record year in travel, with profits up 11% to £73 million, driven by an increase in total sales of 4% and continued improvement in like-for-like sales, which were up 1% in the second half.

In our high street business profits increased by 4% to £58 million, demonstrating the continued success of our profit focused strategy.
"The group is highly cash generative and as a result we have announced today a further share buyback of up to £50 million and a 14% increase in the full year dividend.

"It is important to acknowledge that this performance would not be possible without the continued commitment and hard work of all our colleagues across the business.

"Looking ahead, our focus will remain on profitable growth, cash generation and investing in new opportunities that position us well for the future."