Activist investor backs WHSmith travel shift with £65m stake

Activist investor Palliser Capital has acquired a 5% stake in WHSmith, citing the opportunity to boost the retailer’s “underperforming” share price following its exit from the UK high street.

Jun 13, 2025 - 07:50

Activist investor backs WHSmith travel shift with £65m stake

Activist investor Palliser Capital has acquired a 5% stake in WHSmith, citing the opportunity to boost the retailer’s “underperforming” share price following its exit from the UK high street.

The London-based investment firm confirmed the move just weeks after WHSmith offloaded its legacy high street division to focus on its more profitable travel retail business.

Palliser Capital founder and chief investment officer James Smith said: “Following the sale of its legacy high street business, we believe WH Smith will benefit from being a high-quality, pure-play travel retail operator.

“However, while its travel business has grown strongly in recent years, and recovered fully post pandemic, its share price is still around Covid-19 levels and has consistently underperformed the broader travel and leisure and retail sectors.”

Shares in WHSmith rose 2.63% to £10.90 following the news, although the stock remains down roughly 9% year-on-year.

The investor’s stake, reportedly worth around £65m according to Sky News, makes Palliser one of the retailer’s biggest shareholders. Los Angeles–based Causeway Capital Management remains the largest, with a 12.2% holding.

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Smith added: “Palliser’s stake demonstrates our conviction that WH Smith is an attractive investment opportunity with strong fundamentals for long-term growth, and we look forward to engaging constructively with management to ensure the share price reflects its attractive growth outlook.”

WH Smith announced its high street exit in March, selling its 480 stores and 5,000 staff to Hobbycraft owner Modella Capital for £76m. The WHSmith name will disappear from the high street, with stores rebranded as TG Jones. The new stores will retain existing services including the Post Office and Toys “R” Us concessions.

The company’s travel division — which now makes up 75% of total revenue and 85% of trading profit — continues to operate under the WHSmith name across 32 countries, including major UK airports, railway stations and hospitals.

The group recently said it was “well positioned” heading into the peak summer travel season. Revenue from the travel arm rose 5% in the three months to 31 May, up 7% on a constant currency basis or 6% on a like-for-like basis.

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