Final Results - Part 1

Smith WH PLC
26 October 2000



Part 1

PRELIMINARY RESULTS ANNOUNCEMENT
FOR THE 12 MONTHS ENDED 31 AUGUST 2000

WH Smith PLC announced today (26 October 2000) its preliminary results
for the 12 months to 31 August 2000.

Highlights:                            
                                       
Profit before tax and internet       - £148m (up 8%)
losses
Profit before tax*                   - £140m (up 5%)
                                       
Sales for UK Retailing business      - £1.3 billion (comparable up 5%)
Operating profit for UK Retailing    - £86 million (up 16%)
business
-  Market share gains in core categories
-  Good cost control
-  Net margin improvement

Strong free cash flow                - £83m (up 6%)
                                       
Dividends for year                   - 19 pence (up 4%)
                                       
Earnings per share                   - 40.2 pence (up 5%)
                                       
Share buy-back programme to be         
resumed

*  After £2m non-operating write down

CURRENT TRADING

Overall in the 7 weeks to 22 October 2000, sales were up 6% with
comparable sales up 5%.  Comparable UK Retailing sales were up 5%,
Internet sales up 60%, comparable International Retailing sales up 4%,
Publishing up 25% and News Distribution up 5%.


Enquiries:

WH Smith PLC                                             020 7514 9624
Richard Handover -    Chief Executive            
John Warren      -    Finance Director           
Philippa Power   -    Corporate Affairs          
                                                 
Brunswick                                                020 7404 5959
Jonathan Glass                                   
Katya Wright                                     
                                                 
                                                 

CHIEF EXECUTIVE'S COMMENTS

Commenting on the results, Richard Handover, Chief Executive said:

'This year we have grown profit before tax and internet losses by 8%
and increased free cash flow to £83 million, up 6%.  We have also
increased our dividend per share by 4% and earnings per share by 5%.'

 'This strong overall result has been driven by an excellent
performance in UK Retailing, with comparable sales up by 5% and
operating profits up by 16%.'

'This is a very good result in a difficult retail trading environment.
The strong performance has been as a result of a sales led approach,
driving cash contribution through effective promotional campaigns and
competitive pricing.  Core product categories of books, magazines and
stationery have been extended and have performed strongly throughout
the year.  Entertainment has had an improved second half performance
following active management steps.  We are also increasing the
awareness of the brand through improved quality of the High Street and
US offer and re-branding of our UK Travel stores.'

'We have achieved market share gains in books, magazines and
stationery.  Comparable book sales grew by 7%, magazines by 5% and
core stationery by 5%.  There has also been exceptional growth in
electronic stationery sales, which have increased by 45% to £25
million.'

'Additionally, we have increased the amount of own-brand and unique
product. Own-brand sales have grown by 15% and our new ranges of own-
brand book titles have grown by 20%.'

'Overall, UK Retailing gross margins have been maintained in core
categories. This has been achieved through improved sales mix towards
higher margin products, such as electronic stationery and computer
accessories, and the increasing penetration of own-brand product.'

'Further cost control and supply chain savings have increased net
margin in UK Retailing from 5.8% to 6.5%.'

 'WHSmith.co.uk's role in our retailing strategy continues to develop
through its growing presence on digital platforms and its integration
into High Street and Travel stores.  Sales have grown by 55% and we
have actively sought to contain trading losses at £7 million. We have
also made additional investment in Connect2U and in-store kiosks,
amounting to £1m.'

'We are establishing WHSmith as a leading international travel brand.
The US business has performed strongly in the second half with
operating profits up 15% on a comparable basis and has considerable
momentum going forward.  This will be helped by the investment made
during the year in systems, supply chain and new management.  We
acquired Hazelwood and Benjamin during the year and these businesses
are both performing in line with expectations and give us critical
mass and further brand reach.'

'Publishing has had an excellent year with sales up 8% and profits up
40% on a proforma basis. It included a strong autobiography from Sir
Alex Ferguson and novels by Stephen King, Josephine Cox and Rosamunde
Pilcher.  Front list sales were up 10% and we have a strong profile of
future author releases in the pipeline.   We are also increasingly
using our ability to develop differentiated product to sell in both
traditional and digital formats and this is contributing to our
retailing growth.'

'The News Distribution business has performed broadly in line with
expectations and delivered a strong trading cash flow.'

'During the course of the year, we have continued with the fundamental
restructuring of the News business with SAP implementation now
covering 40% of the business and mechanisation is near completion.'

'We are committed to restructuring the magazine supply chain in order
to increase retailer choice and improve efficiency. The development of
Connect2U, our business to business trading portal, will enable
retailers to order supplies on-line and will increase efficiency
further.  In particular, it will benefit independent retailers, which
represent over 50% of the News business' revenue.'

'Although the short term results of News Distribution may be volatile
due to the major change process that we have started, we are confident
that building on the investments we have made, this business is well
placed to grow its revenue streams in the future.'

'Net cash at the year end was £123m.  It is our intention to improve
the efficiency of our capital structure by resuming our share-buy back
programme, subject to appropriate market conditions.'

'It has been another year of real progress for WHSmith.  We have made
and are making major strides forward in developing our businesses.
This is being achieved by leveraging the brand, driving sales growth
and increasing efficiency.'

' We have an excellent business, which has established a track record
of growth.  Over the last three years we have grown earnings per share
by 13% and dividends per share by 14%, while generating £294m of free
cash flow.  I am confident that our strategic progress, growth and
cash generation will continue in the future and is the key to long
term shareholder value.'

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