WH Smith cut its cash burn forecasts after better-than-expected trading in the first two months of 2021 despite the national lockdown imposed on January 4.
The newsagent and travel convenience store operator said it now expected monthly cash burn of around £12m – £17m versus previous guidance of £15 – 20m.
“We adapted well to the evolving trading environment on the high street, despite reduced footfall, with revenue in our High Street business in January 2021 at 74% of 2019 levels and 84% of 2019 levels in February 2021, ahead of our expectations,” the company said in a trading statement.
“Within our High Street business, we continue to see significant growth from our online businesses. Our online greeting cards business, funkypigeon.com, saw record sales for the Valentine’s day period.”
The travel business continue to see the same broad trends as WH Smith reported in January. Total revenue in January 2021 was 35% of 2019 levels and 33% of 2019 levels in February 2021. North America continues to be its best performing market in Travel.
WH Smith also announced that it had extended the maturity of two existing £200m term loans to October 2023 and agreed new minimum liquidity covenants.
