British newspapers, books and stationery retailer WH Smith posted an 8 per cent increase in full-year profit and said it was "well positioned" to benefit when consumer spending recovers.
"Whilst trading conditions are challenging, we have planned accordingly," said chief executive Kate Swann.
The 217-year-old firm, which trades from over 560 high street stores and nearly 500 outlets at airports, train stations, hospitals and motorway service stations, also said it would return £35 million to shareholders through a share buyback programme.
WH Smith said it made a profit before tax and exceptional items of £82 million in the year to August 31st.
That compares with analysts' consensus forecast of £81.4 million, and £76 million in the previous year.
Total sales fell 1 per cent to £1.34 billion, while like-for-like sales fell 5 per cent, but gross margin improved 220 basis points.
The firm said it has identified a further £14 million of cost savings.
A final dividend of 11.3 pence was proposed, up 16 per cent on the prior year.
Shares in WH Smith have increased in value by 22 per cent over the last six months, outperforming the FTSE All Share General Retailers Index by about 4 per cent.
The stock closed Wednesday at 487 pence, valuing the business at £764 million.
Reuters