High street retailer WH Smith is to sell its Asia Pacific operations in order to focus on turning around its troubled UK business, it was reported today.
The company, which issued a profits warning after a disappointing Christmas trading season, is likely to confirm the sale alongside results next week.
According to the Financial Times no buyer has yet been found for the Aspac stores, the bulk of which are based in Australia and New Zealand.
The group first announced in late January that it was reviewing its strategic options for WH Smith Asia Pacific - four weeks after it warned that annual profits would be "materially below expectations".
A spokeswoman declined to comment on the company's plans for the business today.
The group is also likely to update the market on a review of operations with job cuts among 1,000 office staff at Swindon and 200 employees in London likely.
A move to sell the Asia Pacific business, which consists of around 200 stores across Hong Kong, Singapore, Australia and New Zealand, would follow the sale of the company's US businesses.
WH Smith's book chains in Australia, where it trades as Angus and Robertson, and New Zealand, where it is branded Whitcoulls, are the largest booksellers in their local markets and said to be worth around £30 million. The chains were acquired in 2001.
The disposal will mark WH Smith's return to focus on its domestic business, which it has been trying to turn around in recent months.
The interim results will be the first major presentation by new chief executive Kate Swann, who joined the company from Argos last year.
In January disgruntled WH Smith shareholders failed to block a £2.6 million "golden hello" package for Ms Swann.
Nearly 34 million shareholders had sought to kill a pay and bonus deal, which they claimed was not tied closely enough to performance.
But rebel shareholders were outnumbered by the 98 million voters who backed the remuneration package of the 38-year-old former managing director of catalogue retailer Argos.
Tuesday April 13, 2004
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