WH Smith (SMWH) expects the coronavirus outbreak to drag down its second-half UK travel revenues by 15 per cent against previous forecasts. Its airport turnover, which is the group’s most affected channel, will fall by 35 per cent over March and April.
WH Smith has witnessed a significant impact to Asia Pacific business since February, which accounts for 5 per cent of its travel revenues. Over the past two weeks, a slump in passenger numbers at airports beyond Asia has also affected the group. While WH Smith hasn’t yet observed any material coronavirus effects on its high street business, it recognised that this too could be hit.
As a result, WH Smith expects full-year revenues to be between £100m to £130m lower, with underlying pre-tax profits falling by between £30m and £40m. The group’s half-year results are due 22 April.
Peel Hunt slashed its full-year 2020 forecasts for adjusted pre-tax profits and earnings per share from £161m and 113p, respectively, to £109.6m and 77.3p.
