Retailer WH Smith (SMWH) has issued a “Pre-close Trading Update” headlined “Solid peak trading and initial self-help to deliver full year profits in line with expectations”. What’s though the detail, with shares currently still below 365p having been above 450p as recently as last month?
WH Smith (SMWH) has now announced what it describes as “the successful pricing of new ordinary shares in the capital of the company”. How “successful” is the pricing for existing shareholders?
I warned on WH Smith (SMWH) with the shares still at around 700p in August last year and again at 644p in November. They most recently closed a bit below 500p before announcements today, firstly a “Trading Update”.
WH Smith (SMWH) has issued “Findings following the independent Deloitte Review” and “Board changes” announcements and the shares are currently up 5% at 644p in response. However, with this following I writing on the company in August ‘after in June UK “Completion of Sale… to capture the substantial global growth opportunities”, now massive North America “profit overstatement” warning!’, concluding a further uncertainty avoid/sell despite the shares then down 37% at around 700p, what about now?
On 30th June this year WH Smith (SMWH) issued a “Completion of Sale”-titled announcement regarding the UK High Street business. However the detail revealed it was only completion of sale at a lower price than originally announced, though the company argued still “the value to the group and its shareholders of ensuring a successful completion of the transaction… creates a pure play global travel retailer which is well positioned to capture the substantial global growth opportunities in its key markets and drive enhanced shareholder value”. Then the shares responded down to 1090p and there’s now from the company a “Update – North America: Revised guidance”-titled announcement… and what of the shares in response currently down 37% at around 700p?!
