RETAIL and news distribution group WHSmith revealed a nine per cent rise in group operating profits despite failing to stop flagging high street sales.

Reporting interim results for the six months to February 28, WHSmith said group sales had fallen two per cent to £1.6bn with like-for-like sales in its UK retail unit down by a similar amount.

Profits in the UK retail division - made up of 553 high street stores, 220 travel stores and WHSmith.co.uk - were up one per cent to £83m because of improved margins on stationery products sourced from Asia.

Sales for WHSmith's UK high street operation fell three per cent to £700m, losing four per cent of sales on a like-for-like basis.

Britain's largest bookseller said book sales lost three per cent with news down by two per cent and magazines up four per cent.

Entertainment sales fell by six per cent despite strong DVD sales, which rose 87 per cent.

Richard Handover, chief executive, said: "We are encouraged by current trading in the UK businesses, but are mindful of the uncertain economic outlook and resulting possible impact on consumer confidence."