WH Smith has delivered a lower-than expected profit even after cutting its targets multiple times, as “weaker” consumer confidence slowed the company’s turnaround.

The London-listed travel retailer posted a £73m pre-tax profit in the year to the end August, 28 per cent lower than last year. After multiple profit warnings earlier this year the group had cut its target to £75m but missed even this lower goal. 

Leo Quinn, the turnaround specialist who took charge of WH Smith in April, said he has begun “a fundamental reset” of the group as it battles soft consumer confidence and travel disruption caused by the Iran war.

The group’s executive chairman, who previously led comebacks at Balfour Beatty and Qinetiq, said it had suffered from “forced growth” which resulted in “increased costs, too many loss-making stores, acquisitions not integrated effectively and high organisational complexity”. 

Quinn said WH Smith’s UK division, which includes stores at airports, train stations and hospitals, was forced to cut marketing spend and discount more products in response to “weaker consumer sentiment”. 

The group’s shops at hospitals performed the best, with revenue growing nine per cent, compared to three per cent at its train station stores. Takings across WH Smith’s UK arm grew four per cent to £870m.

WH Smith told shareholders that its suppliers have adopted a more “cautious” approach in response to the “macroeconomic and geopolitical backdrop” caused by the conflict int he Middle East. 

The firm, which is newly reliant on its airport stores after selling its high street estate last year, had been forced to issue multiple profit warnings throughout the year, as the Iran war causes travel disruption and pushes up the cost of flying, resulting in lower consumer spend at airports.

WH Smith saw its airport business grow by just one per cent on a like-for-like basis, with the group blaming “the macro environment and reduction in passengers”. 

The retailer’s revenue grew by nine per cent to £437m at its beleaguered North American arm, which was beset by an accounting scandal after it emerged that its profit in the region had been flattered for years. 

But the group blamed lower passenger volumes in North America for its stalling growth at the start of the new financial year, as like-for-like growth was flat in the 10 weeks to 7 November.

Quinn said his “complex” turnaround plan will “transform WHSmith over the medium-term into a Group capable of generating attractive returns, with significant annual free cash flow.”