WH SMITH CUTS PROFIT OUTLOOK AND RAISES CAPITAL AMID IRAN WAR

WH Smith Plc has lowered its profit outlook and announced a plan to raise capital as the conflict in the Middle East weighs on sales across its airport store network. Shares in the FTSE 250 retailer fell 16 per cent at Wednesday's market open, dropping to 415p. The stock stands more than 35 per cent lower over a broader period. The retailer attributed the deterioration in its financial position to a prolonged slowdown in global travel and a decline in consumer confidence.

The Iran war has disrupted international travel patterns, reducing footfall at the airport locations that form a central part of WH Smith's retail network. The company's airport stores represent a significant component of its commercial operation, making the business particularly exposed to fluctuations in passenger numbers. The profit forecast cut and capital-raising plan represent a direct response to the sustained pressure on trading conditions. WH Smith confirmed both measures together as part of its revised financial outlook.

The share price decline places WH Smith among the retailers most visibly affected by the geopolitical situation in the Middle East. The capital-raising plan signals that the company is taking steps to reinforce its financial position in response to the changed trading environment. The extent of the full impact on WH Smith's annual results will depend on how long current travel conditions persist. No timeline for a recovery in airport footfall has been confirmed by the company.