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WH Smith has reported a 29 per cent rise in annual profits, despite falling sales at its high street stores.

In a statement today the retailer confirmed that its pre-tax profits for the year to August 31st climbed to £66 million, up from £51 million a year earlier.

Profits across WH Smith's high street outlets did climb by five per cent to £44 million over the year, but like-for-like sales across its key stores were down by six per cent.

WH Smith said the fall was in line with its strategy to "rebalance the mix of the business," with the retailer hoping to move away from CD and music sales and refocus its efforts on selling books.

However like-for-like sales across WH Smith's travel business were up by two per cent, delivering a 16 per cent rise in profits – which climbed to £36 million.

The company said the sales growth had been driven by its airports business, while the travel business now operates a total of 309 units – including motorway service area and franchise outlets.

WH Smith said that over the year it opened 18 new units, 15 at airports, two at rail stations and one in the Royal Cornwall Hospital. One unit closed over the 12-month period.

The retailer said that across its high street business the markets were as challenging as the company had expected over the first-half, but stressed that it had benefited from the publication of the final Harry Potter novel over the second-half.

Poor summer weather and the absence of a major sporting event following the 2006 World Cup also boosted WH Smith's performance across its high street stores, the company said.

Meanwhile the company revealed that its high street stores had delivered £10 million of cost savings during the year, £3 million ahead of target.

Commenting on the results WH Smith chief executive Kate Swann said: "We have delivered another year of strong profit performance.

"Our travel business grew strongly, and our high street business made further progress in line with its plan.

"In an uncertain consumer environment, we expect the key Christmas season to be very competitive, however we have planned accordingly," she added.