NEWS and distribution group WH Smith counted the cost of a sharp fall in sales at its US operations as it suffered a slide in annual profits.
Shares fell three per cent as losses in the US division, where airport and hotel stores were hit by the fallout from the September 11 terror attacks, offset growth in the UK.
WH Smith chief executive Richard Handover said the group had pulled out of several loss-making hotels in the US and restructured management.
The group also faces a £16m rise in the amount it puts towards its pension scheme after the recent steep falls on the stockmarket.
It said company contributions would rise from £4m to £20m in the current financial year.
''There will be a material impact on profits,'' the company said.
Results showed pre-tax profits in the 12 months fell to £122m before one-off costs, an eight per cent slide on the same period a year ago.
Sales across the business were up seven per cent, to £2.9bn, but the US arm suffered a 13 per cent fall in like-for-like sales in the year
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