WH Smith faces turnaround test to deter shortsellers

WH Smith is heading into its full-year results under pressure, with new chief executive Leo Quinn needing to persuade investors that he can turn the travel retailer around. Since selling its high street stores, the company has issued repeated profit warnings, lost much of its market value and become a popular target for short sellers.

The sale of 480 stores to Modella Capital brought in about £10m, well below the original £76m asking price. WH Smith now expects pre-tax profit of about £75m, down 40 per cent year on year, as disruption linked to the Iran war has reduced passenger numbers and spending; an accounting error in its North American division also led to an ongoing FCA probe and a £600m fall in its valuation in one day. Its shares have fallen 63 per cent since the sale, and it is London’s 10th most-shorted listed company.