By Ian Walker

WH Smith shares fell to a 16-year low after the retailer cut its guidance and launched a capital raising to boost its balance sheet following a downturn in conditions due to the Middle East war.

Shares were down 84.40 pence, or 17%, at 407.80 pence in early morning European trading, marking their lowest point since September 2010. Shares are currently down 36% over the year to date.

The FTSE 250-listed company--which sells books, magazines and sandwiches at airports, train stations and hospitals--said Wednesday that it was planning to issue up to 26 million new ordinary shares via a share placing. The final number of shares to be placed and price will be announced once the bookbuild closes, it said.

Based on the company's closing price of 492.2 pence on Tuesday, this would raise about 128 million pounds ($171.2 million).

WH Smith said it is also offering retail investors the chance to buy shares under a separate offer. It added that certain directors, including Chair Leo Quinn and Chief Financial Officer Max Izzard would be subscribing for 1.725 million pounds of shares alongside the placing.

Separately, the company cut its guidance for the fiscal year ending Aug. 31 given the ongoing uncertainty in the Middle East and recent deterioration in the performance of its North America unit.

The company now expects to report adjusted pretax profit of between 75 million pounds and 90 million pounds, down from 90 million pounds to 105 million pounds as guided for alongside its half-year earnings report on April 23.

Over the seven weeks ended June 6 group like-for-like revenue was up 1%. Within this, North America revenue was down 4% compared with a rise of 2% over the first seven weeks of the second half since Feb. 28.

WH Smith said North America airport like-for-like revenue fell 2% as air fare rises and lower capacity due to the Middle East conflict hurt passenger numbers.

The company said it doesn't expect any improvement in consumer confidence, adding that trading is heavily weighted toward the final quarter.

It expects North America revenue growth of 4% to 6% for the year compared with previous expectations of 6% to 8%.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

June 10, 2026 04:17 ET (08:17 GMT)

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