WH Smith refinances covenants and says trading better than expected

(Alliance News) - WH Smith PLC said Tuesday it has extended its bank financing arrangements with ...

Alliance News 9 March, 2021 | 10:36AM
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(Alliance News) - WH Smith PLC said Tuesday it has extended its bank financing arrangements with its existing banks, adding that trading has been better than expected.

The company has extended the maturity of its two existing GBP200 million term loans to October 2023 and agreed a new minimum liquidity covenant for both the August 2021 and February 2022 covenant tests.

These changes have allowed it to cancel its existing GBP120 million liquidity loan which was undrawn and due to expire in November 2021.

At the end of February, WH Smith had cash on deposit of GBP52 million, with GBP50 million of known commitments and access to GBP200 million of committed facilities.

The high street, railway station, airport, hospital and motorway service station retailer said that despite the current lockdown, it has delivered a better-than-expected trading performance.

"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," said WH Smith.

As a result, cash burn has improved and is now expected to be around GBP12 million to GBP17 million a month for the January to March period versus the previously guided GBP15 million to GBP20 million.

In its High Street business, WH Smith noted it continues to see significant growth from its online businesses.

"Our online greeting cards business, funkypigeon.com, saw record sales for the Valentine's Day period," WH Smith said.

In its Travel business, total revenue in January 2021 was 35% of 2019 levels and 33% of 2019 levels in February 2021.

Shares in WH Smith were 0.5% higher in London on Tuesday morning at 1,913.00 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
WH Smith PLC 1,120.00 GBX -5.25 -

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