WH Smith investors sour on turnaround plans 

WH Smith shares fell for a second day after the retailer reported a sharp fall in annual profit, leaving investors unconvinced that chief executive Leo Quinn’s turnaround will quickly restore performance. Quinn says earlier “forced growth” left the business with a complex structure, costly operations and too many loss-making stores, and that changes are needed to improve profitability.

For the year to the end of August, WH Smith made £76m in pre-tax profit, more than a quarter less than the previous year and below its £115m target; statutory results showed a £107m loss after £164m of impairments, write-downs and restructuring costs. The recovery plan includes scaling back underperforming operations, closing stores and withholding bonuses, while North American sales face weaker airport footfall. Shares fell more than 8% in early trading to 364p and are down about 41% this year; analysts differ on the plan’s prospects, with some expecting near-term earnings pressure.