WH Smith admitted yesterday that it had had a "poor year" after its finances plunged into the red. Sales were down 2% leading to a pre-tax loss of £135 million - and management warned things are still looking bleak this month.
In the company's defence "exceptional charges" relating to unsold stock and restructuring costs added an extra £200 million to expenditure, but the company's Chief Executive, Kate Swann, remained cautious for the year to come, stressing two of its core revenue streams - book and music sales - continue to fall.
Swann: "The High Street retail business delivered an unacceptable performance following weak Christmas trading. Although we are making progress in improving the business, much remains to be done and we expect to face tough competition in our core markets this Christmas".