WH Smith reported a slight rise in first-half profit and UK sales recovery today but took a £35 million ($55 million) charge on its loss-making US travel arm.
WH Smith, Britain's biggest newspaper and book retailer, said it was encouraged by UK trading but mindful of the uncertain economic outlook.
Profit before tax and exceptionals was up £2 million to £91 million for the six months to February 28th - in line with analysts expectations.
The core British retail business contributed £83 million pounds in profit, up 1 per cent despite a downturn in sales over the key Christmas period.
The retailer - whose core business is around 540 British high street shops selling music, stationery and books - also has about 570 small outlets in US airports and hotels, and a publishing and newspaper and magazine distribution business.
The US business has been in difficulty for a couple of years, hit by the slowdown in the US economy and then the drop in travel following September 11th, 2001, attacks.
WH Smith said the Iraq war and concerns over the spread of the SARS virus had caused another sharp downturn and it took a £35 million-pound write-off to reflect the drop in the value of the business, which it says is non-core and under review.