Paper Profits - Published:17/10/07
position platform paper seller WH Smith (LSE: SMWH) today signalled a arresting 29% jump in pre-profits to £66m for the year ended 31 imposing Net profit per share rose almost 26% to 293p and the final bonus has been lifted 31%But don't get overwhelmed by too much elation Sales were lower and the company is making the kind of cautious noises we have recently learnt to wait for from UK retailersThe headline numbers surely grabbed my attention, although on closer examination, returns from ongoing operations were rather less impressivefar above the ground street profits grew only 5% on sales down 6%, and while the journey division made 16% more than during the previous twelve months, like-for-like sales greater than before just 2% There was a hefty gross margin trek as sales of CDs and DVDs were replaced by flogging more profitable sweets and books (the ubiquitous Harry Potter working the the supernatural, but the main reason for the pre-tax profit jump was financialA mixture of higher investment income and lower funding costs led to a fall in mesh finance charges from £9m to £1m, while the cost cutting programme kicked in faster than predictableWH Smith operates 18 outlets at London's Heathrow airfield, famous for its extended delays and lengthy safety checks Though for every cloud there's a gray lining Frustrated passengers are shelling out more on food, drinks and magazines to while absent the hours And Smith has been cashing inNow I tend to avoid motorway repair areas But WH Smith takes a dissimilar view and has been opening up outlets so fast, it's now in front of schedule There are now 50 Moto and 35 Welcome smash food open, which the company claims are trading wellIndeed, so ‘encouraging' has been the customer reply that Smith is now looking to get bigger further at sites of other motorway service region operatorsFurther, the retailer is tacking on as many as 71 Post Office concessions to its high street food and has so distant opened up 23, with the balance planned for the rest of this year and in 2008Now that the one-off charges relating to the earlier information distribution unit spin-off are out of the way, WH Smith will require to deliver top-line sales growth to keep those proceeds stacking up There's a limit to how distant margin widening and cost cutting will force the bottom lineAnd this is where the company joins the rest of the retailing organization in expressing a fair amount of caution about the future Citing the consumer environment as unsure', Smith expects the key Christmas period to be very competitive, but reckons it has ‘planned so'Perhaps in keeping with overall impressions of the company, the stock valuation looks OK without exactly being extremely appealing Having fallen from a high of 460p at the start of this year to 392p nowadays, on a prospective price to earnings ratio for 2008 of some 125 times at a yield of 33%, the shares aren't particularly expensiveBut you almost certainly won't be rushing to fill your boots at this height Nor me, though if the price falls back to recent lows near 360p, and with a share cash in programme in the offing, I might be tempted© Copyright 1998-2007, The assorted Fool incomplete All rights reserved This material is for personal employ onlyPlace of Reg: England & Wales Company Reg No: 3736872 VAT Reg No: 735 7818 01 Registered Office: 30.
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Beat the rate rise - Published:13/01/07
The Bank of England's unexpected hike in interest tax has put many households under increased financial pressureDon't fail to spot your chance to tell us what you think of This is Money and assist us shape its futureSorting your finances is simple, so simple you can do it in eight steps Forget the rest and read thisThe Bank's financial Policy Committee decided to increase tax to 525% yesterday – the third increase in the space of six monthsHomeowners with tracker or criterion changeable mortgages will see an instant increase in their outgoings If lenders pass on the full add to, monthly repayments on an £100,000 loan will add to from £70677 to £72280, based on a novel mortgage rate of 725%But there are measures customers can take to limit the impact of the increase Here are our tips on beating the speed rise:The Standard Variable Rate is a mortgage lender's fluctuating interest speed used as the non-payment rate for borrowers For banks and building societies it's a cash intimidate - milking those who can't be worried to look for a better deal SVRs are typically 2% to 3% above the bank speed – a fit profit margin for the banksThe good news is that it is easy to button mortgages and banks offer some competitive deals If you want to repair the rate of your mortgage, do it now – banks can leave it a couple of weeks before rising their fixed rate after a rate go up, so there's an opportunity to get pre-go up deals ING Direct and the Cheshire Building civilization currently have two-year deals at 495%, while the Yorkshire Building civilization has a 10-year deal at the same rate If you desire security, looking at a fixed rate would be a shrewd move Check out if you could save with our mortgage finderHowever, if you have a large amount of savings or a decent amount going into your current explanation each month, consider offsetting your mortgage In homecoming for not receiving interest on your savings, you do not pay interest on that amount of your borrowing While many borrowers see offset mortgages as the preserve of the rich, households with £14,000 worth of savings and a £150,000 homeloan could bang 05% off their mortgage interest rate It's up to the individual whether they want lower mortgage payments or interest on their investmentsA key reason why have an account rates have risen is growing inflation, caused by hikes in utility bills Although power prices from all providers have rocketed over the history five years, it is still value checking whether you could save by switching providers The easiest bills to cut are gas, electricity, house phone and broadband, and you can check whether you can make savings here If you automatically renew your railway wagon and house insurance each year there's also a good chance you could make savings there, too Visit our insurance part to seeBe the first to know about base rate changes, investments news, the latest on home prices and other issues that have an effect on the pound in your pocket Find out moreInterest rates on credit cards aren't influenced by the bank speed as much as mortgages, but they do tend to creep up once the have an account rate rises If you have a large balance on a credit card that you university teacher't clear each month then it is worth switching to a cheaper contract to reduce your monthly outgoings and negate the crash of the rate riseYou have two main choices – a life of equilibrium card or a 0% equilibrium transfer offer The best life of balance deal is offered by results & Spencer, with an interest speed of 39% on its &More certificate until transferred balances are clearedIf you are looking for a balance transfer contract, HSBC is offering 0% until April next day, but charges a 2% fee For a fee-free deal, call the Yorkshire Bank, which has waived the fee on its six-month balance move deal Sainsbury's Bank also have a five month fee-free equilibrium transfer dealIf you have an unsecured personal loan then your rate should be set at the APR you originally took the loan out at However, secured loans tend to be variable so it could be value looking at switching to a fixed rate Check out any penalty charges you'll bring upon yourself first thoughAs inflation rises, it's more important you are in the best-paying investments account so your money doesn't drop in value While banks are quick to hike their mortgage rates, they are less hasty with savings tax Indeed, some banks even cut their savings rate after the last rate rise in November, eager that consumer apathy would mean they would not bother to buttonThere are some good-looking deals currently on offer, but not necessarily by have an accounts you may have heard of Icesave, an Icelandic have an account, and Indian bank ICICI both disburse savers 545% and are increasingly popular with consumers How they will act in response to yesterday's rise, remains to be seenIf you haven't taken benefit of your Isa allowance, do so before the April cut-off direct The Post Office is increasing the rate on its Instant investor account from 525% to 55%, including a 1% bonus for 12 months from the day of account opening The novel rate applies from 7 February, 2007 Also, National Savings and Investmnents has already raised its Isa rate to 58% Visit our best investments tables, to get the best rates on money Isas and savings accountsSelect a loan term 12 months (1 year) 24 months (2 natural life 36 months (3 natural life 48 months (4 natural life 60 months (5 natural life 72 months (6 natural life 84 months (7 natural life 96 months (8 natural life 108 months (9 natural life 120 months (10 natural lifePlease select a type of insurance existence insurance Home and contents Car Breakdown services Health - check-up Health - dental Travel Pet.
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Get insured for winter sports says Post Office - Published:27/11/06
A third of all insurance claims made by those who like to indulge in chill sports such as skiing are for check-up bills, highlighting the need for a good insurance rule, according to Post Office Travel ServicesSpecific expenses incurred due to enjoying winter sports education were highlighted as ambulance transport to a sanatorium, which can cost between £300 and £500 in Europe as well as the US and Canada, and evacuation from ski slopes, which in the US, Canada and Europe will cost between £1,000 and £2,000The skull of travel and leisure at the Post Office, Kevin McAdam, has urged persons to make certain that they have a sufficient insurance policy in place in the unfortunate occasion of an accident on the slopes, warning that chill sports usually "carry more risk than a usual beach holiday"Mr McAdam went on to state: "The costs for check-up treatment in ski resorts can be very far above the ground So if an uninsured skier or snowboarder is injured on the slopes, they could be faced with a huge bill For example, inpatient treatment with hospital can cost up to £50,000 in the USA"We advise chill sports fans to make sure that they have adequate cover for their activities before they travel, to avoid any sore and costly surprises this ski season"The Post Office ski and chill sports travel cover is available for single trips up to a period of 90 existence and offers a wide range of cover.
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