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High street retailer WH Smith said today that it expects its annual results to be "towards the top of market expectations".

The book seller and stationer stressed confidence in its forthcoming full-year results in a short trading update, with shares in the company subsequently opening up 2.4 per cent in early trading.

Some UK retailers have struggled over recent months in the wake of this summer's heavy rain, but analysts say it appears that WH Smith has weathered the conditions.

Commenting ahead of the release of its annual results for the year to August 31st, the company stressed that its focus on gross margin gains and "tight cost control" within its high street retail business meant that it had continued to deliver a "solid performance".

WH Smith added that its travel retail business, comprising of outlets at railway stations and airports, had also performed strongly and was "making good progress".

"Accordingly WH Smith Plc expects the outcome for the year to August 31st 2007 to be towards the top of market expectations," said the company.

Market analysts say the statement implies the retailer's pre-tax profits for 2007 could reach £64 million, up from £51 million last year and ahead of average forecasts of £62 million.

Investment bank Seymour Pierce subsequently upped its rating on WH Smith from "hold" to "outperform".

Analyst Richard Ratner explained: "I think the wet weather has helped them on the high street and the travel business, which has extremely strong competition, has continued to trade well."

WH Smith, which was last week rumoured to be considering a bid to takeover troubled book chain Borders, is due to publish its full-year results on October 11th.