[R]6:05AM London – The retailer WH Smith bucked the trend of weak retail expectations and reported 4% rise in sales and profit rise of 15% before exceptional items.[/R]

WH Smith PLC, a UK based retail company said full year revenues rose 4% to £1.35 billion from £1.3 billion a year earlier. Comparable same store sales in the period rose 2%. Travel sales rose 22% from a year ago to £413 million, up 1% on a comparable basis and High Street sales declined 2% to £939 million, a drop of 3% on a comparable stores basis.

Net profit in the full year fell 2% to £59 million or 35.3 pence per diluted share compared to net profit of £60 million or 33.1 pence per share, a year earlier. Net profit before the exceptional items rose to £76 million from £66 million a year ago.

During the year company returned £90 million through 33 pence a share special dividend, stock buyback and consolidation of 67 new shares for every 74 existing shares. At the end of August, the company net asset was £161 million compared to £227 million.

The company spent £39 million in capital expenditure compared to £32 million a year ago. In the period the company opened 37 new store locations and estimated expenditure of £32 million in the current year.

Total number of diluted shares declined to 167 million in 2008 from 181 million shares in 2007.

The retailer reported flat pre-tax profit of £76 million compared to a year ago of which travel segment generated £41 million and High Street delivered £47 million before exceptional items.

At the end of August, the retailer operated 772 store locations of which 557 were in High Street and 215 in travel locations. The company managed a total of 3.37 million square feet retail space of which 3 million square feet is at High Street locations and 360,000 square feet at travel locations.

The company issued final dividend of 9.7 pence, up 20% from a year ago and paid 14.3 pence for the year, up 21% from a year ago, excluding special dividend of 33 pence.

The free cash flow declined in the year to 39% or £63 million on operating asset of £161 million at the end of the year compared to 35% or £81 million of free cash flow on £227 million of assets in the prior year period.

WH Smith PLC, in the last one year traded as high as 444.75 pence in May 2008 and as low as 285 pence in January 2008. Based on the yesterday’s closing price the company has a market cap of £546.63 million.