Ailing retailer WH Smith has mapped out its strategy for reinvigorating the business after seeing a potential bidder walk away from a takeover.

The group, which last week discovered private equity firm Permira was no longer interested in mounting a bid, pledged to overhaul its stores to boost core ranges of stationery, cards, books and magazines.

Updating investors on its turnaround strategy, chief executive Kate Swann said WH Smith was becoming a "substantially simplified and refocused group".

That has seen the sale of overseas businesses while the company has also pledged to remove £30m of costs within three years and agree the sale or demerger of publishing house Hodder Headline. WH Smith confirmed it was in talks with a number of parties interested in acquiring Hodder Headline and would hand back the net proceeds to investors.

Ms Swann said: "We aim to return the UK high street retail business to its role as Britain's most popular stationer, bookseller and newsagent."