Interim Results Announcement for the period ended 28 February 2026

23 April 2026

• Total Group revenue up 5% to £748m (20251: £716m)

  • UK up 2%; North America (NA) up 10%*; Rest of the World and Other ('ROW') up 8%*

• Headline Group profit before tax and non-underlying items2 £3m (20251: £21m)

  • Headline Group trading profit2 of £32m (20251: £47m)

• Headline diluted EPS before non-underlying items2 (0.8)p (20251: 11.5p)

• Good progress against the key priorities set out in December across all divisions

• UK trading performance in H1 impacted, as expected, by disruption following the refurbishment of multiple large airport stores and inflation headwinds

• Successfully opened global flagship stores at Heathrow Terminals 3, 4 and 5 in March and April

• Travel Essentials stores in North America delivering a strong performance with total revenue up 22%* in H1; decisive actions taken in the Resorts business; good progress made against remediation plan

• Continued progress in core ROW markets with actions to address challenging performance and reduce exposure in sub-scale markets

• Suspension of the dividend to reduce debt and strengthen the Group's financial position

• In light of the uncertainty arising from the conflict in the Middle East, the Group is taking a more cautious outlook reflecting the impact on passenger numbers and weaker consumer confidence. At this stage, the Group expects to deliver FY26 Headline Group profit before tax and non-underlying items2 of

£90m - £105m.

"The immediate focus is to restore confidence and ensure the right foundations are in place to support profitable growth and long-term value creation.

"Moving forward, the Board and management team will have a relentless focus on driving cash, cost discipline and strengthening the balance sheet. As a first step, the Board has taken the prudent decision to suspend the dividend.

"This is a business with a strong brand and proposition in high-footfall travel markets and the new flagship stores opened across Heathrow airport are raising the global standard for travel essentials retail.

"None of this is achievable without our people. Making sure our colleagues are empowered is a key priority, as engaged teams execute better, serve customers better and drive higher performance over time.

"While the near-term outlook is uncertain, I am confident that, with the right focus and discipline, the business can deliver superior returns for the benefit of our colleagues, partners and shareholders over the longer-term."

* On a constant currency basis

1 Comparative periods have been restated to correct the accelerated supplier income recognition and inventory-related items in the North America division (refer to Note 1b for further details) and to separately disclose results from discontinued operations (refer to Note 1a for further details)

2 Alternative Performance Measure (APM) defined and explained in the Glossary on page 48. All numbers presented are from continuing operations unless otherwise stated

Group financial summary - continuing operations

Revenue performance - continuing operations

Current trading

In the first 7 weeks of trading for H2 2026, Group like for like ('LFL') revenue2 was up 2%. By division, the UK delivered flat LFL revenue growth, largely reflecting a softening in Air following disruption to flight schedules to the Middle East. In North America, LFL revenue growth was 2% with the core Travel Essentials business continuing to perform well with LFL revenue growth of 6%. Rest of the World delivered LFL revenue growth of 5%.

Outlook and planning assumptions

In light of the uncertainty arising from the conflict in the Middle East, the Group is taking a more cautious outlook reflecting the impact on passenger numbers and weaker consumer confidence. Much will depend on the peak summer trading period and the Group assumes no immediate improvement in consumer confidence and assumes that jet fuel supplies can be maintained. At this stage, the Group expects to deliver FY26 Headline Group profit before tax and non-underlying items2 of £90m - £105m.

3 The Group adopted IFRS 16 'Leases' with effect from 1 September 2019. The Group continues to monitor performance and allocate resources based on pre-IFRS 16 information (applying the principles of IAS 17), and therefore the results for the years ended 31 August 2025 and 31 August 2024 have been presented on both an IFRS 16 and a pre-IFRS 16 basis. Measures described as 'Headline' are presented pre-IFRS 16. For the purposes of narrative commentary on the Group's performance and financial position, both pre-IFRS 16 and IFRS 16 measures are provided. Reconciliations from pre-IFRS 16 measures to IFRS 16 measures are provided in the Glossary on page 48. Group revenue was not affected by the adoption of IFRS 16, and therefore all references to and discussion of revenue are based on statutory measures.

4 Constant currency

Planning assumptions for the full year ending 31 August 2026: total Group revenue growth of c.3%-5%. In the UK, total revenue growth of c.1%-3%, in North America c.6%-8%, and in the Rest of the World division, c.2%-4%.

Headline trading profit margin2 in the UK of c.13%-14%, North America c.7%, and c.4% in the Rest of the World. This reflects the expected reduction in brand marketing, increased promotional activity and inflation headwinds.

Full year headline net debt2 is expected to be around £420m.

ENQUIRIES:

WH Smith PLC's Interim Results 2026 are available at whsmithplc.co.uk.

The Group has delivered a solid first half trading performance against a backdrop of investment related disruption and inflation headwinds.

The UK business is focused on retaining category leadership in Travel Essentials through the one-stop-shop format. Good progress has been made, with refurbished stores opening under this format across Heathrow Terminals 3, 4 and 5, Liverpool, Belfast and East Midlands airports. Within the UK, the focus also remains on expanding the Travel Essentials proposition by targeting new and better quality space. Growth categories of health and beauty, including the recently launched own-brand 'Roame' range, and expanding food-to-go remain a priority.

In North America, the core Travel Essentials business continues to perform well with this segment being the focus for investment and profitable growth going forward. The Resorts and InMotion businesses continue to perform below expectations. Following a review of the Resorts business in the first half, 3 unprofitable fashion stores have closed and the business is on track to exit additional unprofitable fashion and speciality stores by the end of the current financial year. The InMotion business, including the breadth of the portfolio of stores, is under active review and future store openings under this brand will only be considered as part of strategically important tender packages.

In the ROW division, future investments will be focused in strategically important markets where the business already has scale, including Ireland, Spain and Australia. In the first half, new investments were agreed in the Republic of Ireland, including key units at Dublin airport. Moving forward, the focus will be to reduce the Group's presence in or exit sub-scale markets. Consistent with this approach, 4 uneconomic

stores were closed at Dusseldorf airport in the period and the Group's Norwegian business has been closed. Future growth opportunities will only be considered using a less capital-intensive franchise model.

The Group's remediation plan implemented following the issues identified in the North America division, to strengthen governance, controls and systems and globally aligned processes is progressing well.

The Group continues to cooperate with the FCA following an investigation into the Company in respect of its compliance with UK Listing Principles and Rules and the Disclosure and Transparency Rules in relation to the matters announced by the Company on 19 November 2025. The Group is committed to cooperating fully with any engagement in relation to the North America accounting issue from any regulatory body or other authority.

On 7 April 2026, Leo Quinn joined the WHSmith Group as Executive Chair.

Looking ahead, the immediate focus for the Group is to drive cash, improve efficiency, reduce debt, and restore the business to profitable growth.

Total Group revenue at £748m (20251: £716m) increased by 5%, with LFL2 revenue up 2%, compared to the prior year. By division, the UK was up 2% on a total basis, North America was up 10%4, and ROW was up 8%4. On a LFL basis, the UK was up 2%, North America was up 1%, and ROW was up 6%.

The Group delivered a Headline trading profit2 in the period of £32m (20251: £47m). The UK decreased by

£6m to £34m; North America decreased by £3m to £2m; and ROW decreased by £6m to a loss of £4m.

Headline Group profit before tax and non-underlying items2 was down £18m to £3m (20251: £21m). Group loss before tax, including non-underlying items and on an IFRS 16 basis, was £25m (20251: £4m) in the period.

The Group maintains a solid balance sheet with cash generative trading operations and good liquidity. The Group had the following cash and committed facilities as at 28 February 2026:

The Group has a revolving credit facility ('RCF') with a maturity date of 30 June 2030 and a £327m convertible bond with a maturity of 7 May 2026 which has a fixed coupon of 1.625%.

As at 28 February 2026, Headline net debt2 was £496m (August 2025: £390m) and the Group has access to c.£550m of liquidity. Leverage2 at 28 February 2026 was 2.9x Headline EBITDA2 (August 20251: 2.1x). Net debt including IFRS 16 lease liabilities at 28 February 2026 was £1,010m (August 2025: £874m).

The Group's refinancing, as previously announced, extends and smooths the maturity profile of its debts. In March 2026, the US private placement notes were fully drawn down and the Group cancelled its 12-month £200m term loan facility. Additionally, the Group exercised the first of two one-year extension options on the £120m term loan taking its maturity to March 2029. The term loan is expected to be drawn down ahead of repayment of the convertible bonds in May 2026.

The Group generated a Headline EBITDA2 of £48m in the period (20251: £62m). Capex was £50m (2025:

£38m7). As expected, working capital outflow was £54m8 in the period (20251,8: outflow of £72m), which results from a one-off payables timing headwind linked to one of our large franchisor partners at the end of last year, new store openings, and the seasonality of the business.

5 Cash and cash equivalents comprises cash in bank and on deposit of £33m and cash in transit of £15m

6 Draw down of £219m as at 28 February 2026

7 Excluding capex related to non-underlying items of £nil (2025: £1m)

8 Pre-IFRS 16 and before non-underlying items

In total, there was a free cash outflow2 in the period of £61m (20251: £72m). This year, it is expected that, subject to investment opportunities, Headline net debt2 will be in the region of £420m at the end of the financial year.

The Group remains focused on maintaining an efficient balance sheet and on a disciplined approach to capital allocation. In the near-term, the Group has rebalanced its capital allocation priorities to:

• strengthen the balance sheet through tighter cash control and improved cash generation;

• invest to grow and protect value. This will be achieved by investing in business development and new space growth with a clear focus on attractive returns. Furthermore, business assets will be protected through maintenance and transformation projects. It is anticipated that capex spend will be c.£90m in the current financial year; and

• the dividend has been suspended to support the strengthening of the balance sheet and the Group will look to reinstate returns to shareholders when excess cash is available.

Total revenue for the Group was £748m (20251: £716m), an increase of 5% compared to the previous year, generating a Headline trading profit2 in the period of £32m (20251: £47m).

UK

In the UK, total revenue in the first half was £392m (2025: £384m) which resulted in a Headline trading profit2 of £34m (2025: £40m). This reduction year on year reflects the inflationary pressures on the business and the expected disruption caused as a result of the store refurbishments across several airport locations in the period.

Within this division, a key area of focus is to develop ranges and formats that are relevant to the customer at each stage of their journey enabling them to make best use of their time when travelling and put more products into their baskets to grow spend per passenger.

In food-to-go, the Smith's Family Kitchen offer is going from strength to strength with award-winning products, an expanded meal deal proposition and an enhanced hot food and coffee range that is resonating strongly with customers.

The health and beauty category is delivering strong growth and, during the first half, the business launched its first own-brand health and beauty product range under the brand 'Roame'.

These extended ranges enable the business to continue to innovate through format development, ensuring that the one-stop-shop proposition is credible to customers and landlords while creating further space growth opportunities.

Optimising the estate and reviewing the division's operating model has also been a key area of focus in order to realise substantial cost efficiencies in the face of inflationary cost pressures. This will continue into the second half of the financial year.

During the period, 7 new stores were opened, including 4 at airports, 1 Hospital store, 1 Rail store and 1 motorway service area franchise. 11 small and less well-located stores were closed.

Air

Total revenue increased by 1%, with LFL revenue up 2%, reflecting the expected trading disruption resulting from the division's largest ever store development programme. In the first 7 weeks of trading in the second half, LFL revenue was down 3%. This reflects the trading disruption from the store refurbishments, the impact on passenger numbers as a result of the conflict in the Middle East and inflation headwinds.

Since the beginning of the financial year, 6 one-stop-shops have opened ahead of the summer, including refurbished stores at Heathrow, Liverpool, Belfast and East Midlands airports. These new format stores will broaden the offer for customers and improve convenience and basket size in these high-footfall locations.

Health and beauty and food-to-go remain attractive growth categories and they are well aligned to passenger needs.

Over the past 4 weeks, 3 flagship stores have opened across Heathrow Terminals 3, 4 and 5. Each of these locations showcase the full breadth of the Travel Essentials proposition, including a full health and beauty offer and instore pharmacies. These latest store openings are setting a new global benchmark for Travel Essentials with improved design, in store navigation and extensive ranges. While it is early days, their performance is encouraging.

Heathrow Terminal 3 is the division's highest density store with c.6,500 transactions per day. This 5,500 sq ft store showcases the best of the one-stop-shop format with a full health and beauty offer, including an instore pharmacy, alongside a Smith's Family Kitchen food-to-go range and a new coffee and breakfast offer. These categories continue to drive good growth demonstrating the vast choice available to customers and customer demand.

At Heathrow Terminal 5, a larger 6,500 sq ft refurbished store opened at the beginning of April encompassing the full one-stop-shop offer with an adjoined InMotion store. The reduced InMotion footprint has enabled greater investment into higher growth and higher margin categories, including health and beauty and food-to-go. Within the InMotion store, customers can browse a full Apple shop-in-shop alongside headphones and tech accessories from other major global brands.

During the period, 4 new stores were opened at Manchester airport and 9 stores were closed, primarily as a result of landlord redevelopment.

Hospitals

Hospitals is the UK division's second largest channel by revenue and it delivered a strong performance in the period, with revenue increasing by 8% and LFL revenue up 4%. In the first 7 weeks of trading in the second half, LFL revenue increased by 3%. This growth reflects the strength of the multi-format approach and the strong partnerships in place.

During the period, 1 new hospital store was opened. The division currently operates from 155 stores in over 100 hospitals, and there are still significant space growth opportunities in this channel.

Rail

Total revenue in Rail increased by 1% year on year with LFL revenue down 2%. In the first 7 weeks of trading in the second half, LFL revenue decreased by 1%. During the period, 1 new store opened at London Bridge station featuring the one-stop-shop format. In addition, a key area of focus in this channel is on broadening more food and beverage on-the-go ranges in order to maximise customer convenience.

There is the opportunity to expand this further across more stores in Rail. 1 store was closed in the period.

NORTH AMERICA

Despite the challenges at the start of the financial year, North America is an attractive market and investment opportunity. This is the largest travel retail market in the world with significant investment and long-term structural growth trends. There is therefore plenty of opportunity to capitalise on the substantial growth opportunities given the division's small market share.

Total revenue in North America in the period increased by 10%4, on a constant currency basis, with total revenue up 5% to £204m (2025: £194m). The Air segment in North America was up 15% on a constant currency basis and LFL revenue increased by 3%. Within this, the Travel Essentials business, which accounts for over 55% of revenue in North America, was the key driver of performance, with total revenue on a constant currency basis up 22% and up 6% on a LFL basis.

This division delivered a Headline trading profit2 of £2m (20251: £5m), with the reduction year on year largely driven by increased costs associated with the new logistics set up and the annualisation of increases in labour costs. The prior half year has been restated for the supplier income and inventory-related items identified at FY25.

During the first half, 18 new stores were opened across airports including Dallas Fort Worth, Denver, Detroit and Albuquerque.

Travel Essentials

The Travel Essentials business has consistently delivered a strong performance, growing 19% on a constant currency basis in FY25 and up 22% in the first half, underpinned by customer demand and attractive double-digit margins.

Travel Essentials is the division's most profitable segment and on a fully allocated basis generates around a 10% Headline trading profit margin2. It is anticipated that as the business grows and operations are enhanced, margins will grow further, which in turn, will support the profitability of the North America division overall.

In January, the team opened a new store at Albuquerque airport featuring a marketplace format. This is a good example of where it is possible to introduce the convenience of everything under one roof, similar to the Group's one-stop-shop format in the UK. Under this contract, there is the flexibility to realign category mix over the term of the lease to ensure the proposition remains relevant for customers and ahead of changing trends. The payback period is less than two years and a long-term contract has been secured.

In Portland, the new East Bank Market store opened during the period which is performing ahead of expectations. This store has a payback period of less than two years. Both these examples demonstrate that the Group has a clear ability to win in prime locations, adapt formats and drive attractive and profitable returns.

The division's new store pipeline is strong and following a review, these new stores will meet the Group's

investment hurdle rates. We expect a good tender pipeline of new stores in the second half of the year.

InMotion

InMotion LFL revenue decreased by 4% in the first half of the year. In the first 7 weeks of trading, LFL revenue is up 3% as a result of increased store footfall in the period.

InMotion is highly regarded by landlords. However, this segment is in like-for-like decline and it is now essential that the focus turns to the commercial proposition, reducing the number of product lines and improving availability while reducing working capital.

In the first half of the year, 9 stores were closed with 6 new store openings across Dallas, Denver, Detroit and Albuquerque airports, primarily as part of wider retail packages within these airports. Moving forward, new store openings will be limited, with any new InMotion stores being considered only as part of strategically important tender packages with strong returns.

The review of the existing store portfolio is ongoing and is expected to complete in the second half of the year. This review includes undertaking a deeper diagnostic of the estate to determine the factors that need to be in place for these stores to succeed.

Over time, the number of InMotion stores will decline by around 20%-30%, with store numbers reducing below 100 in the medium-term.

Despite store closures, there is an opportunity to increase the margin over time with the best performing stores retained, range optimisation complete and a strengthened operational performance.

Resorts

LFL revenue in Resorts decreased by 6% in the period, driven by the continued reduction in Las Vegas visitor numbers. This trend has continued in the first 7 weeks of the second half with Resorts down 8%.

As announced at the Group's Preliminary Results in December 2025, there is no plan to open any new stores in Resorts. Decisive action has been taken to begin a controlled exit of the fashion stores and to reduce the number of speciality stores.

In the first half of the year, 8 Resort stores were closed: 3 fashion and 5 speciality where the leases were short or there were opportunities to exit without penalty. An additional 8 Fashion stores will be closed in the balance of year. There are a further 4 fashion stores where discussions are ongoing with landlords to look to reformat these stores and 10 stores where discussions are ongoing with third parties. We aim to largely complete the exit of the fashion stores this year.

Other format options or controlled exit options for the remaining speciality stores, where the lease arrangements run over the medium term, are under review.

The Hotel Convenience and Welcome to Las Vegas stores are profitable and cash generative and these will continue to be optimised.

During the period, 18 new stores were opened and 18 stores were closed. There are over 50 stores which have been won and are yet to open.

Including the 18 store openings in the period, the North America division now operates from 282 stores in Air (including 120 InMotion stores), and 80 stores across Resorts and Rail.

Strengthening the operating model has been a key area of focus in the period and the Group's remediation plan has progressed. Global accounting policies are being implemented across all divisions with associated operational systems and controls. Key financial reporting controls have been embedded into the North America month end processes and commercial finance capabilities have been strengthened.

REST OF THE WORLD AND OTHER

The Rest of the World division delivered total revenue growth of 8% on a constant currency basis with LFL revenue up 6%. The division delivered a Headline trading loss2 of £4m (2025: Headline trading profit of

£2m). This reflects a challenging performance in some locations and the inflationary pressures on staff and logistics costs. These locations are part of the current divisional review.

Further investment will be targeted where the business already has scale and expertise, ensuring profitability is strengthened in the largest-serving markets, with a particular focus in Ireland, Spain and Australia.

During the first half, new investments were agreed in the Republic of Ireland which is an important market for the division. This will also see the introduction of the successful one-stop-shop format into Dublin, Cork and Shannon airports. New stores were also opened at Melbourne and Tenerife airports.

Managing the division's store portfolio is also a key priority which will result in exiting and reducing exposure for the Group in sub-scale markets as contracts expire or through active portfolio management. During the first half, 4 uneconomic stores were closed at Dusseldorf airport, and, more recently, the Group

has exited its uneconomic Norwegian business. The Group continues to explore the potential to withdraw from other uneconomic markets while also assessing the possibility to move to a franchise model in some locations.

Looking ahead to the next phase of growth, the Group will focus on a less capital intensive franchise-led model, an area where there is already considerable experience. This approach will enable expansion across high-potential markets where there is an opportunity to extend the Group's presence.

Consistent with the less capital-intensive franchise led model, during the first half we opened a further franchise store in the Philippines, and 2 further stores opened at the start of H2 in Saudi Arabia. An additional 5 stores were opened in Malaysia under a joint venture agreement. By working in partnership with experienced local operators, it is possible to leverage their local expertise alongside the Group's space and promotional management to optimise performance.

The ROW division now has 324 stores open. Of these, 58% are directly-run, 11% are joint venture and 31% are franchise.

CultPens.com delivered a good performance in the period, in line with the Group's expectations.

Technical planning assumptions FY26 (Pre IFRS 16 basis)

Total stores

North

During the period, 36 stores were opened. As at 28 February 2026, the Group operated from 1,275 stores (2025: 1,280). 41 stores were closed in the period. The Group's focus will remain on opening more profitable stores and better quality space. In the current financial year, it is anticipated that a further c.30-40 stores will close with c.10-20 new store openings.

The Group continues to make solid progress against its main sustainability commitments and it is on track to meet its current net zero targets to reduce Scope 1 and 2 emissions by 80% by 2030 and have 75% of supply chain emissions covered by science-based carbon reduction targets by 2027.

Work on packaging reduction and the transition to more recyclable options continues, aligned to producer responsibility legislation in all UK and European markets.

Our colleague networks continue to grow, providing a channel for colleague-led engagement on our diversity and inclusion initiatives and employee policies and processes.

Our charity partnership with the National Literacy Trust continues to support children's literacy and Miracle

Flights supports children who need to travel to receive life-changing medical care.

WHSmith is the top performing speciality retailer in Morningstar's Sustainalytics ESG Benchmark and has been awarded an ESG rating of AAA from MSCI.

Total Headline trading profit2 in the period was £32m (20251: £47m) of which the largest division, UK, generated a Headline trading profit2 of £34m (2025: £40m). North America delivered £2m (20251: £5m) and ROW a Headline trading loss2 of £4m (2025: Headline trading profit of £2m).

The Group generated a Headline profit before tax and non-underlying items2 of £3m (20251: £21m).

Headline net finance costs (pre-IFRS 16) in the period were £14m (20251: £12m). This includes cash outflows of £9m (2025: £7m) and £4m (2025: £4m) relating to the non-cash debt accretion charge from the convertible bond which has a fixed coupon of 1.625%.

Lease interest of £11m arises on lease liabilities recognised under IFRS 16, bringing the total net finance costs on an IFRS 16 basis to £25m (20251: £22m).

The effective tax rate2 in the period was 16% (20251: 19%) on profit before tax and non-underlying items2. Net corporation tax receipts in the period were £5m (2025: payments of £17m). Based on current legislation, it is expected that the effective tax rate2 in the current financial year will be around 25%.

Calculation of Headline diluted earnings per share - Continuing operations2

The above measures are calculated on a pre-IFRS 16 basis. Headline diluted EPS2 was (0.8)p (20251: 11.5p).

EPS calculated on an IFRS 16 basis is provided in Note 7, and a reconciliation between the IFRS 16 and pre-IFRS 16 earnings per share is provided in Note A4 to the Glossary on pages 54 to 55.

The diluted weighted average number of shares in issue used in the calculation of Headline diluted

EPS2 assumes that the convertible bond is not dilutive and reflects the number of shares held by the ESOP Trust.

Profit attributable to non-controlling interests primarily represents the joint venture partner share of profit in relation to airport contracts in the USA. For the six months ended 28 February 2026, the profit attributable to non-controlling interests was £4m (20251: £2m) and is determined based on operating financial performance of the associated stores prior to allocation of administrative costs.

9 Before non-underlying items

10 Where profit attributable to equity holders represents a loss, the basic weighted average shares in issue are used in the diluted EPS calculation. Refer to Note 7 for further details.

The Group has chosen to present a measure of profit and earnings per share that excludes certain items, which are considered non-underlying and exceptional due to their size, nature or incidence, or are not considered to be part of the normal operations of the Group. Non-underlying items in the year in the Income statement are detailed in the table below.

1

£m Ref. Feb 2026 Feb 2025

Amortisation of acquired intangible assets (1) (1) (2) (1) (2)

Impairment of non-current assets (2) (16) (6) (11) (5)

Provisions for onerous contracts (2) - (1) (4) (1)

Transformation programmes - supply chain, IT (3) (6) (12) (6) (12) and operational efficiencies

Costs relating to the investigation into accelerated (4) (3) - (3) -recognition of supplier income in North America

Impairment of other receivables (5) (2) - (2) -

IFRS 16 remeasurement gains 2 - - -

Other non-underlying costs (1) - (1) -

income statement - continuing operations

1. Amortisation of acquired intangible assets

   Non-cash amortisation of acquired intangible assets of £1m (2025: £2m) primarily relate to the MRG and InMotion brands.

2. Impairment of non-current assets and provision for onerous contracts

   The Group has carried out an assessment for indicators of impairment of non-current assets across the store portfolio.

   Where an indicator of impairment has been identified, an impairment review has been performed to compare the value-in-use of cash generating units, based on management's assumptions regarding likely future trading performance, aligned with the latest Board approved forecast, to the carrying value of the cash-generating unit as at 28 February 2026.

   As a result of this exercise, a non-cash charge of £11m (20251: £5m) was recorded within non-underlying items for impairment of non-current assets on a pre-IFRS 16 basis, of which £10m (20251: £5m) relates to property, plant and equipment and £1m (20251: £nil) relates to intangible assets (primarily software). On an IFRS 16 basis, the total impairment charge of £16m (20251: £7m) comprises £11m property, plant and equipment (20251: £5m), £1m intangible assets (20251: £nil) and £4m (20251: £1m) right-of-use assets.

   A charge of £4m on a pre-IFRS 16 basis (20251: £1m; IFRS 16 basis £nil; 20251: £1m) has been recognised in the income statement to provide for the unavoidable costs of continuing to service a number of non-cancellable supplier and property contracts where the space is vacant, a contract is loss-making or currently not planned to be used for ongoing operations. This provision will be utilised in line with the profile of the contracts to which they relate.

   Of the total charge for impairment and onerous contracts, on a pre-IFRS 16 basis, £1m is attributable to the UK operating division, £8m to North America and £6m to Rest of the World and Other. Impairment charges in the North America and Rest of the World and Other operating divisions have principally arisen due to a lower trading outlook in certain individual stores across these regions.

3. Transformation programmes

   Costs of £6m (2025: £12m) have been classified as non-underlying in relation to a number of Board-approved programmes relating to IT transformation (£4m; 2025: £3m), operational efficiencies (£2m; 2025:

   £7m) and supply chain (£nil; 2025: £2m).

   The IT transformation programme includes costs relating to upgrading core IT infrastructure, data migration and investment in data security, store systems modernisation and other significant IT projects. These strategic projects will provide additional stability, longevity and operational benefits. Costs in FY26 are expected to be around £7m and approximately £5m in FY27 before the current programme completes.

   The operational efficiencies programme commenced in 2025 and costs include head office restructuring and transformation costs across all segments. This programme will deliver a more efficient operating model to support the Group's strategic objectives. The current programme will largely complete in FY26 and we would expect the remaining cost for these items to be around £3-4m in the remainder of the financial year.

   These multi-year programmes are reported as non-underlying items on the basis that they are significant in quantum, relate to a Board-approved programme and to aid comparability from one period to the next.

4. Costs associated with the investigation into accelerated recognition of supplier income in North America

   Costs incurred during the period include £3m of professional fees in relation to the investigation into accelerated recognition of supplier income in North America including costs of the investigation, remediation and regulatory related costs. We expect further costs in FY26 in the region of £3-4m.

5. Impairment of other receivables

The Group's other receivables include amounts due from non-controlling interest equity shareholders in

certain of the Group's North America subsidiaries which relate to contributions owed towards property, plant and equipment construction for stores and are received in accordance with the cash requirements of the subsidiary. Certain of these contributions are no longer considered to be recoverable based on the expected credit loss that considers the counterparty's ability to pay, which reflects the financial outlook of the associated stores. Such expected credit losses of £2m (2025: £nil) are recognised within non-underlying items where an impairment charge for store non-current assets has also been recognised within non-underlying items.

A tax credit of £4m (20251: £3m) has been recognised in relation to the above items (£4m pre-IFRS 16 (20251: £3m)) from continuing operations.

Free cash flow2 reconciliation - Continuing operations

The Group generated a Headline EBITDA2 of £48m in the period (20251: £62m) demonstrating the cash generative nature of the business. Capex was £50m (20251: £38m7) as the Group continued to invest in new stores, IT and energy efficient chillers and other store equipment. As expected, there was a working capital outflow8 of £54m in the period (20251: outflow8 of £72m), which results from a one-off payables timing headwind linked to one of our large franchisor partners at the end of last year, new store openings, and the seasonality of the business. In total, there was a free cash outflow of £61m (20251: £72m).

11 Excludes cash flow impact of non-underlying items

Capex was £50m (20251: £38m7) which includes the additional spend from opening 36 stores around the world.

Headline net debt2 is presented on a pre-IFRS 16 basis. See Note 8 and Note A8 of the Glossary for the impact of IFRS 16 on net debt.

As at 28 February 2026, the Group had Headline net debt2 of £496m comprising convertible bonds of

£325m and net overdrafts of £171m (31 August 2025: £390m, convertible bonds of £320m and net overdrafts of £70m).

In addition to the free cash flow2, the Group had outflows relating to non-underlying items2 from continuing operations of £22m mainly relating to transformation projects and costs associated with the investigation into accelerated recognition of supplier income in North America and this includes costs charged in the prior year; the final dividend from 2025 of £8m; and a net cash outflow related to separation costs associated with discontinued operations of £10m.

Subject to investment opportunities, it is expected that Headline net debt2 will be in the region of £420m at the end of the year. The increase relates to continuing investment in new stores in North America alongside ongoing transformation costs.

On an IFRS 16 basis, net debt was £1,010m (August 2025: £874m; February 2025: £1,055m), which includes an additional £514m (August 2025: £484m; February 2025: £601m) of lease liabilities.

Headline EBITDA2 - six months to Feb 2026 48

Headline EBITDA2 - six months to Aug 2025 125

Headline net debt2 496

Leverage2 at 28 February 2026 was 2.9x (August 20251: 2.1x), comprising Headline net debt2 over rolling 12 months of Headline EBITDA2, with a seasonal increase relating to the expected higher net debt at February 2026. In the near-term, the Group plans to strengthen the balance sheet through tighter cost control and improved cash generation to reduce leverage below 2.0x.

Fixed charges, comprising property operating lease charges and net finance costs, were covered 1.5 times (August 20251: 1.6 times) by Headline EBITDA2 before Headline fixed operating lease charges.

Return on capital employed2 is calculated as the Group operating profit before non-underlying items2 as a percentage of operating capital employed and is stated on a pre-IFRS 16 basis. Operating capital employed is calculated as the 12-month average net assets, excluding net debt, retirement benefit surplus/obligation and net current and deferred tax balances.

The Group had Headline net assets of £263m, £27m lower than at 31 August 2025. Under IFRS the Group had net assets of £161m (20251: £188m).

On 10 March 2026, the first extension option on the term loan was exercised taking the maturity date to 24 March 2029. On 11 March 2026, the US private placements were fully drawn.

The Group's Annual Report and Accounts 2025, a copy of which is available on the Group's website at https://www.whsmithplc.co.uk, sets out the principal and emerging risks and uncertainties which could impact the Group for the remainder of the current financial year along with mitigating activities relevant to each risk (see Annual Report and Accounts 2025 pages 65 to 71). These include:

• treasury, financial and credit risk management;

• economic, political, competitive and market risks;

• brand standards;

• key suppliers and supply chain management;

• store portfolio;

• business interruption;

• reliance on key personnel;

• international expansion;

• cyber risk, data security and data privacy compliance; and

• environment and social sustainability.

The Group continues to monitor and respond to the impact of the ongoing conflict in the Middle East with respect to the principal risks listed above.

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulations.

This announcement contains certain forward-looking statements with respect to the operations, performance and financial condition of the Group. By their nature, these statements involve uncertainty since future events and circumstances can cause results to differ from those anticipated. Nothing in this announcement should be construed as a profit forecast. We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

6 months to 28 Feb 2026 (unaudited)

6 months to 28 Feb 2025 restated1 (unaudited)

12 months to 31 Aug 2025 (audited)

continuing operations

parent interests

1 Comparative periods have been restated to correct the accelerated supplier income recognition and inventory related items in the North

America division (refer to Note 1b for further details) and to separately disclose results from discontinued operations (refer to Note 1a for further details).

2 Alternative performance measure. The Group has defined and explained the purpose of its alternative performance measures in the Glossary on page 48.

3 See Note 3 for an analysis of non-underlying items. See Glossary on page 48 for a definition of Alternative Performance Measures.

1 Comparative periods have been restated to correct the accelerated supplier income recognition and inventory related items in the North

America division (refer to Note 1b for further details) and to separately disclose results from discontinued operations (refer to Note 1a for further details).

1 Comparative periods have been restated to correct the accelerated supplier income recognition and inventory related items in the North America division and to reclassify certain receivables from current to non-current (refer to Note 1b for further details).

For the 6 months to 28 February 2026

6 months to 12 months to

28 Feb 2025

£m 28 Feb 2026

restated1

31 Aug 2025

1 Comparative periods have been restated to separately disclose results from discontinued operations (refer to Note 1a for further details) and to reclassify the Receipt from settlement of financial instruments from Operating activities to Investing activities.

2 Includes interest payments of £9m on lease liabilities (28 February 2025: £10m; 31 August 2025: £16m) for continuing operations. Interest payments on lease liabilities for discontinued operations were £nil (28 February 2025: £2m; 31 August 2025: £4m).

3 Capital repayments of obligations under leases for discontinued operations were £nil (28 February 2025: £19m; 31 August 2025: £30m).

For the 6 months to 28 February 2026

1 Comparative periods have been restated to correct the accelerated supplier income recognition and inventory related items in the North America division and to reclassify certain receivables from current to non-current (refer to Note 1b for further details).

2 Other reserves includes Revaluation reserve of £2m (February 2025 and August 2025: £2m), ESOP reserve of £(16)m (February 2025 and August 2025: (£(25)m), convertible bond reserve of £40m (February 2025 and August 2025: £40m), hedging reserve of £nil (February 2025:

£1m; August 2025: £nil) and Other reserves of £(280)m (February 2025: £(285)m; August 2025: £(271)m). The 'Other' reserve includes

reserves created in relation to the historical capital reorganisation and proforma restatement of £(238)m (February 2025 and August 2025:

£(238)m), the demerger from Smiths News PLC in 2006 of £69m (February 2025 and August 2025: £69m) and cumulative amounts relating to employee share schemes of £(111)m (February 2025: £(116)m; August 2025: £(102)m).

3 Restated to correct the accelerated supplier income recognition and inventory related items in the North America division resulting in a reduction to retained earnings of £20m and non-controlling interest of £4m. Refer to Note 1b of the Group's Annual Report and Accounts for further details.

These Condensed Interim Financial Statements for the 6 months to 28 February 2026 have been prepared in accordance with UK-adopted International Accounting Standard 34,

'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

The interim financial statements do not include all of the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the Group's Annual Report and Accounts 2025, which has been prepared in accordance with UK-adopted international accounting standards and the requirements of the Companies Act 2006, and any public announcements made by WH Smith PLC during the interim reporting period.

The financial information set out in this report does not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. The Annual Report and Accounts 2025 have been filed with the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report and did not contain statements under s498(2) or s498(3) of the Companies Act 2006.

The Condensed Interim Financial Statements have been prepared in accordance with the accounting policies set out in the 2025 Annual Report and Accounts and it is these accounting policies which are expected to be followed in the preparation of the full financial statements for the financial year to 31 August 2026, except as outlined below.

Taxes on income in the interim period are accrued using the tax rate that would be applicable to the expected total annual profit or loss.

The Group has adopted the amendments to IAS 21 regarding 'Lack of exchangeability' which became mandatory for the first time during the current financial year. The adoption of this amendment has had no material impact on the Group.

The Group has identified certain measures that it believes will assist the understanding of the performance of the business. These APMs are not defined or specified under the requirements of IFRS.

The Group believes that these APMs, which are not considered to be a substitute for, or superior to, IFRS measures, provide stakeholders with additional useful information on the underlying trends, performance and position of the Group and are consistent with how business performance is measured internally. The APMs are not defined by IFRS and therefore may not be directly comparable with other companies' APMs.

The key APMs that the Group uses include: measures before non-underlying items, Headline profit before tax, Headline earnings per share, trading profit, Headline trading profit, Headline Group profit from trading operations, like-for-like revenue, gross margin, fixed charges cover, Headline EBITDA, effective tax rate, net debt and Headline net debt, free cash flow, return on capital employed and leverage. These APMs are set out in the Glossary on page 48 including explanations of how they are calculated and how they are reconciled to a statutory measure where relevant.

The Group has chosen to present a measure of profit and earnings per share that excludes certain items, which are considered non-underlying and exceptional due to their size, nature or incidence, or are not considered to be part of the normal operations of the Group. The Group believes that the separate disclosure of these items provides additional useful information to users of the financial statements to enable a better understanding of the Group's underlying financial performance.

Non-underlying items can include, but are not limited to, restructuring and transformation costs linked to Board agreed programmes, costs relating to M&A activity, impairment charges and other property costs, significant items relating to pension schemes, amortisation of intangible assets acquired in business combinations, and the related tax effect of these items. Reversals associated with items previously reported as non-underlying, such as reversals of impairments and releases of provisions or liabilities are also reported in non-underlying items. Further details of non-underlying items recognised in the Income statement in the current and prior year are provided in Note 3.

1. Basis of preparation, Accounting policies and Approval of Interim Statement (continued)

The consolidated financial statements have been prepared on a going concern basis. The directors are required to assess whether the Group can continue to operate for at least 12 months from the date of approval of these financial statements.

The Group overview describes the Group's financial position, cash flows and borrowing facilities and also highlights the principal risks and uncertainties facing the Group. The Group

overview also sets out the Group's business activities together with the factors that are likely to affect its future developments, performance and position.

In making the going concern assessment, the directors have undertaken a rigorous assessment of current performance and forecasts for the period to 31 August 2027, including expenditure commitments, capital expenditure and available borrowing facilities. The covenants on the Group's facilities are tested half-yearly and are based on fixed charges cover and leverage. The directors have also considered the existence of factors beyond the going concern period that could indicate that the going concern basis is not appropriate. We received legal advice, and waivers were obtained where required, for the facilities in place as at 28 February 2026 to allow for any potential impacts as a result of the North America accounting issues. We are not aware of any other events within the going concern period which could trigger a breach of covenants associated with the facilities.

The directors have modelled a base case scenario consistent with the latest Board approved forecasts, and include a number of assumptions including passenger numbers, spend per passenger, headline trading margin and cost inflation. Under this scenario the Group has significant liquidity and complies with all covenant tests throughout the assessment period.

Whilst the Group has limited direct operations across the Middle East, consideration has been given to the ongoing conflict, which commenced after the base case forecast was prepared. This consideration includes potential direct impacts through lower passenger volumes and indirect impacts including weaker consumer sentiment and elevated inflationary pressures. As a result of these challenges and the ongoing uncertainty, Middle East downside assumptions for the six-month period to 31 August 2026 have been incorporated into the severe, but plausible, downside assumptions.

The downside scenario therefore includes a 12 per cent reduction to revenue and a 16 per cent reduction to headline trading profit for the six-month period to 31 August 2026, compared to the base case to reflect this Middle East uncertainty. For the remainder of the going concern period, the downside scenario forecasts a decrease of revenue in a phased manner from five per cent to 10 per cent relative to the base case, with the associated drop through to headline trading profit together with a decrease in certain variable costs, including turnover-based rents. Under this downside scenario, with additional mitigations of suspended dividend payments, a 10% decrease in administrative costs and reductions to or deferrals of certain capital expenditure, the Group would continue to have liquidity headroom on its existing facilities and comply with all covenant tests throughout the assessment period. The broader grounding of aircraft, for a prolonged period due to global jet fuel shortages, at airports out of which we operate is not considered plausible.

A reverse stress test scenario, which excludes further stress testing of the Middle East downside assumptions, has been conducted to understand the level of revenue downside that could be absorbed before covenants are breached. In this reverse stress test scenario, without further mitigations to those described in the above severe but plausible downside scenario, a covenant breach occurs upon revenue decreasing by 11 per cent relative to the base case on a phased basis over a 12-month period and a flat 11 per cent reduction for the six months thereafter.

Based on the above analysis, whilst the Group acknowledges that there is uncertainty in modelling future forecasts, principally in respect of the ongoing Middle East conflict, the Group considers that sufficient mitigations within its control remain available, including further reductions to or deferrals of capital expenditure and further decreases to fixed costs, and the Group would seek further mitigations outside of its control as considered necessary, such that in the event of a more severe downside scenario to that forecast, the Group would continue to have liquidity headroom on its existing facilities and comply with all covenant tests throughout the assessment period. Accordingly, the directors do not consider this uncertainty to reflect a material uncertainty and have concluded that the Group is able to adequately manage its financing and principal risks, and that the Group will be able to continue to meet its obligations as they fall due and operate within the level of its facilities for at least 12 months from the date of approval of these financial statements.

For the 6 months to 28 February 2026

1. Basis of preparation, Accounting policies and Approval of Interim Statement (continued)
   1. Discontinued operations in the prior period

      A discontinued operation is a component of the Group that (i) either has been disposed of or is classified as held for sale; and (ii) represents a separate major line of business or geographical area of operations or is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations. The results of discontinued operations are presented as a single amount of profit or loss after tax in the consolidated income statement, separate from the results of continuing operations. Non-current assets or disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Depreciation of such assets ceases once they are classified as held for sale.

      On 28 March 2025, the Group agreed to sell its UK High Street business comprising of approximately 480 stores to Modella Capital. The transaction excluded the WH Smith brand, which was retained by the Group. The High Street business represented a separate major line of business and geographical area of operations. Accordingly, the results of this business have been classified as discontinued operations in the prior period in accordance with IFRS 5. The related assets and liabilities were derecognised on completion of the sale in the year to 31 August 2025.

      On 14 August 2025, the Group completed the sale of its online personalised greeting cards business, funkypigeon.com Ltd, to Card Factory PLC for total consideration of £25m. The associated cost of sale amounted to £3m. funkypigeon.com Ltd was reported within the High Street segment, represented a major line of business that the Group exited as part of its strategic shift to become a travel-focused retailer and has therefore been classified as a discontinued operation in accordance with IFRS 5. One of the factors in concluding that funkypigeon.com Ltd constitutes a major line of business was its inclusion within the High Street segment, which the Group has exited as part of its strategic shift to become a travel-focused retailer. Its results are presented within discontinued operations for the prior period, together with those of the High Street business. The assets and liabilities of funkypigeon.com Ltd were derecognised from the Group's consolidated statement of financial position upon completion of the sale in the year to 31 August 2025.

      The next page shows the Group income statement for the period to 28 February 2025 as previously reported along with the impact of discontinued operations.

      1. Basis of preparation, Accounting policies and Approval of Interim Statement (continued)
         1. Discontinued operations in the prior period (continued) Group income statement for the 6 months to 28 February 2025

            6 months to 28 February 2025 as previously reported

            Reclassification of discontinued operations

            6 months to 28 February 2025 after reclassification of discontinued operations

            £m	Before non-underlying items	Non-underlying items	Total	Before non-underlying items	Non-underlying items	Total	Before non-underlying items	Non-underlying items	Total
            Revenue	951	-	951	(235)	-	(235)	716	-	716
            Group operating profit/(loss) - continuing operations	69	(86)	(17)	(20)	65	45	49	(21)	28
            Finance costs	(25)	-	(25)	3	-	3	(22)	-	(22)
            Profit/(loss) before tax - continuing operations	44	(86)	(42)	(17)	65	48	27	(21)	6
            Income tax (expense)/credit	(11)	13	2	4	(10)	(6)	(7)	3	(4)
            Profit/(loss) for the period - continuing operations	33	(73)	(40)	(13)	55	42	20	(18)	2
            Profit/(loss) for the period - discontinued operations	-	-	-	13	(55)	(42)	13	(55)	(42)
            Profit/(loss) for the period - total operations	33	(73)	(40)	-	-	-	33	(73)	(40)
            Attributable to equity holders of the parent	30	(73)	(43)	-	-	-	30	(73)	(43)
            Attributable to non-controlling interests	3	-	3	-	-	-	3	-	3
            	33	(73)	(40)	-	-	-	33	(73)	(40)
            Total comprehensive loss			(18)			-			(18)

            1. Basis of preparation, Accounting policies and Approval of Interim Statement (continued)
         2. Restatement of prior year financial statements

      In August 2025, the Group identified that the recognition of supplier income was being accelerated and identified additional one-off costs regarding inventory-related items in the North America division. As a result, prior year consolidated financial statements have been restated. Amendments to the previously reported consolidated primary financial statements for the period to 28 February 2025 are shown below, after taking into account the adjustments for discontinued operations arising from the sale of the High Street and funkypigeon.com businesses in the year. The reclassification of discontinued operations within the Group income statement have been presented in Note 1a. Certain other reclassification restatements to primary financial statements have also been identified and are set out below, including the reclassification of certain receivables from current to non-current assets and the reclassification of certain cash flows from operating cash flows to investing cash flows.

      Group income statement

      6 months to 28 February 2025 after reclassification of discontinued

      operations Restatement

      6 months to 28 February 2025 restated1 (unaudited)

      £m	Before non-underlying items	Non-underlying items	Total	Before non-underlying items	Non-underlying items	Total	Before non-underlying items	Non-underlying items	Total
      Revenue	716	-	716	-	-	-	716	-	716
      Group operating profit/(loss)1- continuing operations	49	(21)	28	(10)	-	(10)	39	(21)	18
      Finance costs	(22)	-	(22)	-	-	-	(22)	-	(22)
      Profit/(loss) before tax - continuing operations	27	(21)	6	(10)	-	(10)	17	(21)	(4)
      Income tax (expense)/credit	(7)	3	(4)	3	-	3	(4)	3	(1)
      Profit/(loss) for the period - continuing operations	20	(18)	2	(7)	-	(7)	13	(18)	(5)
      Profit/(loss) for the period - discontinued operations	13	(55)	(42)	-	-	-	13	(55)	(42)
      Profit/(loss) for the period - total operations	33	(73)	(40)	(7)	-	(7)	26	(73)	(47)
      	-
      Attributable to equity holders of the parent	30	(73)	(43)	(6)	-	(6)	24	(73)	(49)
      Attributable to non-controlling interests	3	-	3	(1)	-	(1)	2	-	2
      	33	(73)	(40)	(7)	-	(7)	26	(73)	(47)
      Total comprehensive loss			(18)			(7)			(25)
      1 All restatements impacting Group operating profit/(loss) relate	to Cost of sales.

      1. Basis of preparation, Accounting policies and Approval of Interim Statement (continued)
   2. Restatement of prior year financial statements (continued)

      6 months to 28 February 2025 as previously

      reported1 Restatement 6 months to 28 February 2025 restated

      Headline before non-underlying

      items (pre-IFRS

      Headline

      non-underlying

      items (pre-IFRS

      Headline before non-underlying

      items (pre-IFRS

      Headline

      non-underlying

      items (pre-IFRS

      Headline before non-underlying items (pre-IFRS Headline non-underlying items (pre-IFRS

      £m	16)	16)	IFRS 16	Total	16)	16)	IFRS 16	Total	16)	16)	IFRS 16	Total
      UK	40	-	-	40	-	-	-	-	40	-	-	40
      North America	15	-	3	18	(10)	-	-	(10)	5	-	3	8
      Rest of the World and Other1	2	-	3	5	-	-	-	-	2	-	3	5
      Group trading profit - continuing operations	57	-	6	63	(10)	-	-	(10)	47	-	6	53

      1 Restated for the revision to operating segments following the sale of the High Street and funkypigeon.com businesses in 2025.

      1. Basis of preparation, Accounting policies and Approval of Interim Statement (continued) b. Restatement of prior year financial statements (continued) Group income statement - disaggregation of restatement

      Accelerated supplier income recognition Inventory related items Total restatement

      £m	Before non-underlying items	Non-underlying items	Total	Before non-underlying items	Non-underlying items	Total	Before non-underlying items	Non-underlying items	Total
      Revenue	-	-	-	-	-	-	-	-	-
      Group operating loss1	(4)	-	(4)	(6)	-	(6)	(10)	-	(10)
      Finance costs	-	-	-	-	-	-	-	-	-
      Loss before tax - continuing operations	(4)	-	(4)	(6)	-	(6)	(10)	-	(10)
      Income tax credit	1	-	1	2	-	2	3	-	3
      Loss for the period - continuing operations	(3)	-	(3)	(4)	-	(4)	(7)	-	(7)
      Profit/(loss) for the period - discontinued operations	-	-	-	-	-	-	-	-	-
      Loss for the period - total operations	(3)	-	(3)	(4)	-	(4)	(7)	-	(7)
      Attributable to equity holders of the parent	(3)	-	(3)	(3)	-	(3)	(6)	-	(6)
      Attributable to non-controlling interests	-	-	-	(1)	-	(1)	(1)	-	(1)
      	(3)	-	(3)	(4)	-	(4)	(7)	-	(7)
      Total comprehensive loss			(3)			(4)			(7)

      1 All restatements impacting Group operating loss relate to Cost of sales

      1. Basis of preparation, Accounting policies and Approval of Interim Statement (continued) b. Restatement of prior year financial statements (continued) Group earnings per share

         6 months to 28

         February 2025

         Reclassification

         6 months to 28

         February 2025

         after reclassification

         Accelerated

         supplier

         Inventory

         6 months to 28 February

         As previously

         of discontinued of discontinued

         income

         related

         2025

         £m reported

         operations

         operations

         recognition

         items

         Restated

         Basic (loss)/earnings per share - continuing operations (33.6) 32.8 (0.8) (2.4) (2.3) (5.5)

         Diluted (loss)/earnings per share - continuing operations (33.6) 32.8 (0.8) (2.4) (2.3) (5.5)

         Basic (loss)/earnings per share - total operations (33.6) - (33.6) (2.4) (2.3) (38.3)

         Diluted (loss)/earnings per share - total operations (33.6) - (33.6) (2.4) (2.3) (38.3)

         Group cash flow statement extract - 6 months to 28 February 2025

         6 months to 28

         February 2025 As previously

         Classification of financial instrument

         6 months to 28 February 2025

         £m	reported	settlements1	Restated
         Net cash inflows from operating activities	86	6	92
         Net cash outflows from investing activities	(48)	(6)	(54)
         Net cash outflows from financing activities	(55)	-	(55)
         Net decrease in cash in the period	(17)	-	(17)
         1 Reclassification of cash flows linked to the settlement of financial instruments from operating to investing activities.

         1. Basis of preparation, Accounting policies and Approval of Interim Statement (continued)
            1. Restatement of prior year financial statements (continued) Group balance sheet extract - as at 28 February 2025

               £m	As at 28 February 2025 As previously reported	Accelerated supplier income recognition	Inventory related items	Other receivables: current vs non-current1	As at 28 February 2025 Restated
               Deferred tax assets	38	5	-	-	43
               Trade and other receivables	11	-	-	14	25
               Total non-current assets	1,337	5	-	14	1,356
               Inventories	225	(4)	(9)	-	212
               Trade and other receivables	133	(10)	-	(14)	109
               Current tax receivable	16	1	2	-	19
               Total current assets	413	(13)	(7)	(14)	379
               Trade and other payables	(259)	(9)	(7)	-	(275)
               Total current liabilities	(559)	(9)	(7)	-	(575)
               Total non-current liabilities	(811)	-	-	-	(811)
               Total net assets	380	(17)	(14)	-	349
               Retained earnings	245	(14)	(12)	-	219
               Non-controlling interests	34	(3)	(2)	-	29
               Total equity	380	(17)	(14)	-	349

               1 Reclassification of certain receivables related to joint venture arrangements in North America from current to non-current.

            2. Critical accounting judgements and key sources of estimation uncertainty

               The preparation of condensed interim financial statements in conformity with generally accepted accounting principles requires management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates and any subsequent changes are accounted for with an effect on income at the time such updated information becomes available.

               The most critical accounting judgements and sources of estimation uncertainty in determining the financial condition and results of the Group are those requiring the greatest degree of subjective or complex judgement. These relate to the classification of items as non-underlying; assessment of lease substitution rights; determination of the lease term; impairment indicator assessment for store-based non-current assets; and revenue growth assumptions in the Rest of the World and Other goodwill impairment assessment. Other estimates include the measurement of contingent consideration related to the sale of the High Street business; valuation of inventory; and supplier income accounting. The key areas where the judgments, estimates and assumptions applied have a significant risk of causing a material adjustment to the carrying value of assets and liabilities are consistent with those applied in the Group's financial statements for the year to 31 August 2025, as set out on pages 159 to 160 of those financial statements.

         2. Segmental analysis of results

         IFRS 8 requires segment information to be presented on the same basis as that used by the Chief Operating Decision Maker for assessing performance and allocating resources. The Group's operating segments are based on the reports reviewed by the Board of Directors who are collectively considered to be the Chief Operating Decision maker.

         Following the sale of the High Street and funkypigeon.com businesses during the year to 31 August 2025, for management and financial reporting purposes, the continuing operations of the Group are organised into three divisions and reportable segments - UK, North America and Rest of the World and Other.

         The information presented to the Board is prepared in accordance with the Group's IFRS accounting policies, with the exception of IFRS 16, and is shown below as Headline information in section b). A reconciliation to statutory measures is provided below in accordance with IFRS 8, and in the Glossary on page 53 (Note A2).

         1. Revenue

            6 months to 12 months to

            £m	28 Feb 2026 (unaudited)	28 Feb 2025 restated1 (unaudited)	31 Aug 2025 (audited)
            UK	392	384	834
            North America	204	194	413
            Rest of the World and Other	152	138	306
            Revenue - continuing operations	748	716	1,553
            Revenue - discontinued operations	-	235	358
            Revenue - total operations	748	951	1,911

            1 Comparative periods have been restated to separately disclose results from discontinued operations (refer to Note 1a for further details).

            Revenue in the Group is subject to seasonal fluctuations, with higher demand during peak travel periods particularly during the summer holiday months, which fall in the second half.

            Rest of the World revenue includes revenue from Australia of £46m (28 February 2025: £43m), Ireland £29m (28 February 2025: £27m) and Spain £27m (28 February 2025: £24m). No other country has individually material revenue.

2. Segmental analysis of results (continued)

1. Group results 6 months to 28 Feb 2026 (unaudited)

   6 months to 28 Feb 2025 restated1 (unaudited)

   	Headline	Headline			Headline	Headline
   	before non-	non-			before non-	non-
   	underlying items2	underlying items2			underlying items2	underlying items2
   £m	(pre-IFRS 16)	(pre-IFRS16)	IFRS 16	Total	(pre-IFRS 16)	(pre-IFRS16)	IFRS 16	Total
   UK	34	-	4	38	40	-	-	40
   North America	2	-	7	9	5	-	3	8
   Rest of the World and Other	(4)	-	(1)	(5)	2	-	3	5
   Group trading profit -
   continuing operations	32	-	10	42	47	-	6	53
   Unallocated central costs	(15)	-	-	(15)	(14)	-	-	(14)
   Group operating profit before
   non-underlying items -
   continuing operations	17	-	10	27	33	-	6	39
   Non-underlying items (Note 3)	-	(28)	1	(27)	-	(20)	(1)	(21)
   Group operating profit/(loss)
   - continuing operations	17	(28)	11	-	33	(20)	5	18
   Finance costs	(14)	-	(11)	(25)	(12)	-	(10)	(22)
   Profit/(loss) before tax -
   continuing operations	3	(28)	-	(25)	21	(20)	(5)	(4)
   Income tax credit/(expense)	-	4	-	4	(4)	3	-	(1)
   Profit/(loss) for the period -
   continuing operations	3	(24)	-	(21)	17	(17)	(5)	(5)
   (Loss)/profit for the period -
   discontinued operations	-	(2)	-	(2)	10	(45)	(7)	(42)
   Profit/(loss) for the period -
   total operations	3	(26)	-	(23)	27	(62)	(12)	(47)

   1. Comparative periods have been restated to correct the accelerated supplier income recognition and inventory related items in the North America division (refer to Note 1b for further details) and to separately disclose results from discontinued operations (refer to Note 1a for further details).

   2. Presented on a pre-IFRS 16 basis. Alternative Performance Measures are defined and explained in the Glossary on page 48.

   1. Segmental analysis of results (continued)
2. Other segmental items

   £m	Capital additions	Depreciation and amortisation	Impairment	Depreciation	Impairment
   UK	20	(11)	-	-	-
   North America	30	(11)	-	-	-
   Rest of the World and Other	2	(5)	-	-	-
   Headline, before non-underlying
   items (pre-IFRS 16) - continuing
   operations	52	(27)	-	-	-
   Headline non-underlying items (pre-
   IFRS 16)	-	(1)	(11)	-	-
   Headline, after non-underlying
   items (pre-IFRS 16) - continuing
   operations	52	(28)	(11)	-	-
   Impact of IFRS 16	-	-	-	(40)	-
   Non-underlying items (IFRS 16)2	-	-	(1)	-	(4)
   Group - continuing operations	52	(28)	(12)	(40)	(4)

   6 months to 28 Feb 2026 (unaudited) Non-current assets1 Right-of-use assets

   6 months to 28 Feb 2025 restated2 (unaudited)

   Non-current assets1 Right-of-use assets Depreciation

   Capital

   £m additions

   and

   amortisation Impairment Depreciation Impairment

   UK 13 (11) - - -

   North America 20 (10) - - -

   Rest of the World and Other	6	(4)	-	- -
   Headline, before non-underlying items (pre-IFRS 16) - continuing operations	39	(25)	-	- -
   Headline non-underlying items (pre-IFRS 16)	-	(2)	(5)	- -
   Headline, after non-underlying items (pre-IFRS 16) - continuing operations	39	(27)	(5)	- -
   Impact of IFRS 16	-	-	-	(40)	-
   Non-underlying items (IFRS 16)	-	-	-	-	(1)
   Group - continuing operations	39	(27)	(5)	(40)	(1)
   Group - discontinued operations	11	(8)	(32)	(15)	(17)
   Group - total operations	50	(35)	(37)	(55)	(18)

   1 Non-current assets including property, plant and equipment and intangible assets, but excluding right-of-use assets.

   2 Comparative periods have been restated to separately disclose results from discontinued operations (refer to Note 1a for further details).

   1. Segmental analysis of results (continued)
3. Write-down of inventory

6 months to 12 months to

28 Feb 2025

(unaudited)

31 Aug 2025

(audited)

Write-down of inventory - continuing operations 17 15 40

1. Non-underlying items

Items which are considered exceptional due to their size, nature or incidence, or are not considered to be part of the normal operations of the Group not considered part of the normal operating costs of the business are treated as non-underlying items and disclosed separately. Further details of the definition of the non-underlying items are included in Note 1.

6 months to 12 months to

1 Comparative periods have been restated to separately disclose results from discontinued operations (refer to Note 1a for further details).

1. Non-underlying items (continued)

Amortisation of acquired intangible assets

Amortisation of acquired intangible assets primarily relates to the MRG and InMotion brands.

Impairment of non-current assets

The Group has carried out an assessment for indicators of impairment of non-current assets across the store portfolio. Where an indicator of impairment has been identified, an impairment review has been performed to compare the value-in-use of cash generating units ('CGUs'), based on management's assumptions regarding likely future trading performance, to the carrying value of the CGUs.

As a result of this exercise, a non-cash charge of £16m (28 February 2025: £6m) was recorded within non-underlying items for impairment of non-current assets, of which £11m (28 February 2025: £5m) relates to property, plant and equipment, £1m (28 February 2025: £nil) relates to intangible assets and £4m (28 February 2025: £1m) relates to right-of-use assets. Of the total impairment charge, £1m (28 February 2025: £3m) is attributable to the UK operating segment,

£12m (28 February 2025: £3m) to North America and £3m (28 February 2025: £nil) to Rest of the World and Other. Impairment charges in the North America and Rest of the World and Other operating segments have principally arisen due to a lower trading outlook in certain individual stores across these regions.

The impairment recognised on a pre-IFRS 16 basis is provided in note A6 of the Glossary on page 56.

Provisions for onerous contracts

A charge of £nil (28 February 2025: £1m) has been recognised in the income statement to provide for the unavoidable costs of continuing to service a number of non-cancellable supplier and property contracts where the space is vacant, a contract is loss-making or currently not planned to be used for ongoing operations.

Transformation programmes - IT

Administrative expenses of £4m (28 February 2025: £3m) have been classified as non-underlying in relation to a Board-approved IT transformation programme. The IT transformation programme includes one-off costs relating to upgrading core IT infrastructure, data migration and investment in data security, store systems modernisation and other significant IT projects. These strategic projects will provide additional stability, longevity and operational benefits. The programme is expected to complete in the next financial year.

Transformation programmes - operational efficiencies

Administrative expenses of £2m (28 February 2025: £7m) have been classified as non-underlying in relation to Board-approved programmes relating to operational efficiencies. This programme commenced in the year to 31 August 2025 and costs include head office restructuring and transformation costs across all segments. This programme will deliver a more efficient operating model to support the Group's strategic objectives. The current programme will largely complete in FY26.

Costs associated with the investigation into accelerated recognition of supplier income in North America

Administrative expenses incurred during the period include £3m (28 February 2025: £nil) of professional fees in relation to the investigation into accelerated recognition of supplier income in North America, including costs of the investigation, remediation and regulatory related costs. We expect further costs in FY26 due to ongoing regulatory related professional fees.

Impairment of other receivables

The Group's other receivables include amounts due from non-controlling interest equity shareholders in certain of the Group's US subsidiaries which relate to contributions owed towards property, plant and equipment construction for stores and are received in accordance with the cash requirements of the subsidiary. Certain of these contributions are no longer considered to be recoverable based on the expected credit loss that considers the counterparty's ability to pay, which reflects the financial outlook of the associated stores. Such expected credit losses of £2m (28 February 2025:

£nil) are recognised within non-underlying items where an impairment charge for store non-current assets has also been recognised within non-underlying items.

1. Non-underlying items (continued)

   IFRS 16 remeasurement gains

   IFRS 16 remeasurement gains of £2m (28 February 2025: £nil) have arisen from the derecognition of lease liabilities on exit of certain locations, in which right-of-use assets were previously impaired.

   A tax credit of £4m (28 February 2025: £3m) has been recognised in relation to non-underlying items.

2. Net finance costs

   6 months to 12 months to

   £m	28 Feb 2026 (unaudited)	28 Feb 2025 restated1 (unaudited)	31 Aug 2025 (audited)
   Interest payable on bank loans and overdrafts	7	5	11
   Interest on convertible bonds	8	7	15
   Interest on lease liabilities	11	10	20
   Interest income on joint venture loans	(1)	-	-
   Non-underlying finance costs	-	-	1
   Total Group - continuing operations	25	22	47
   Total Group - discontinued operations	-	3	3
   Total Group	25	25	50

   1 Comparative periods have been restated to separately disclose results from discontinued operations (refer to Note 1a for further details).

   Interest on convertible bonds includes £3m (28 February 2025: £2m) coupon interest, £4m (28 February 2025: £4m) non-cash debt accretion charges and £1m (28 February 2025: £1m) fee amortisation.

3. Income tax (credit)/expense

   6 months to 12 months to

   	£m	28 Feb 2026 (unaudited)	28 Feb 2025 restated1 (unaudited)	31 Aug 2025 (audited)
   	Tax on profit	-	4	23
   	Adjustment in respect of prior years	-	-	(6)
   	Total current tax expense	-	4	17
   	Deferred tax - current period	-	-	27
   	Deferred tax - prior period	-	-	2
   	Deferred tax - change in tax rates	-	-	(2)
   	Tax on profit before non-underlying items	-	4	44
   	Tax on non-underlying items - current tax	(1)	(2)	(10)
   	Tax on non-underlying items - deferred tax	(3)	(1)	(8)
   	Total tax on (loss)/profit - continuing operations	(4)	1	26
   	Total tax on (loss)/profit - discontinued operations	-	(6)	(3)
   	Total tax on (loss)/profit - total operations	(4)	(5)	23

   1 Comparative periods have been restated to correct the accelerated supplier income recognition and inventory related items in the North America division (refer to Note 1b for further details) and to separately disclose results from discontinued operations (refer to Note 1a for further details).

   The effective tax rate, before non-underlying items, was a charge of 26 per cent (28 February 2025: charge of 23 per cent). The UK corporation tax rate is 25 per cent.

   The legislation implementing the Organisation for Economic Co-Operation and Development's (OECD) proposals for a global minimum corporation tax rate (Pillar Two) was substantively enacted in the UK on 20 June 2023 and applies to reporting periods beginning on or after 1 January 2024.

   Under the legislation the Group is liable to pay a top-up tax for the difference between their Global Anti-Base Erosion Rules (GloBE) effective tax rate per jurisdiction and the 15% minimum rate.

   The rules are applicable to the Group for the year to 31 August 2025 onwards. The Group has performed an assessment of the Group's potential exposure to Pillar Two top-up taxes. Based on this assessment, the Pillar Two effective tax rates in most of the jurisdictions in which the Group operates are above 15% or will meet the financial thresholds required to meet the Transitional Safe Harbour Rules. However, there are a limited number of jurisdictions where the Transitional Safe Harbour relief does not apply, and the Pillar Two effective rate is close to 15%. There is not a material exposure to Pillar Two taxes in those jurisdictions.

   The Group applies the temporary exception from the accounting requirements for deferred taxes in IAS 12. Accordingly, the Group neither recognises nor discloses information about deferred taxes in relation to Pillar Two.

4. Dividends

   Amounts paid and recognised as distributions to shareholders in the year are as follows:

   6 months to 12 months to

   £m Dividends 28 Feb 2026 (unaudited)

   28 Feb 2025

   (unaudited)

   31 Aug 2025

   (audited)

   Final dividend for the year to 31 August 2025 of 6.0p per 8	-	-
   Interim dividend for the 6 months to 28 February 2025 -	-	14
   Final dividend for the year to 31 August 2024 of 22.6p per -	29	29
   8	29	43

   ordinary share

   of 11.3p per ordinary share ordinary share

   The Board has not declared an interim dividend in respect of the six-month period to 28 February 2026.

5. (Loss)/earnings per share
   1. (Loss)/earnings

      6 months to 12 months to

      £m	28 Feb 2026 (unaudited)	28 Feb 2025 restated1 (unaudited)	31 Aug 2025 (audited)
      (Loss)/profit for the period before non-underlying items, attributable to equity holders of the parent -	(2)	11	51
      continuing operations
      Non-underlying items, after tax (Note 3)	(23)	(18)	(82)
      Loss for the period, attributable to equity holders of the parent - continuing operations	(25)	(7)	(31)
      Loss for the period - discontinued operations	(2)	(42)	(113)
      Total loss for the period, attributable to equity holders of the parent	(27)	(49)	(144)

      1 Comparative periods have been restated to correct the accelerated supplier income recognition and inventory related items in the North America division (refer to Note 1b for further details) and to separately disclose results from discontinued operations (refer to Note 1a for further details).

   2. Weighted average share capital

6 months to 12 months to

6 months to 12 months to

28 Feb 2025

restated1 (unaudited)

31 Aug 2025

(audited)

1 Comparative periods have been restated to correct the accelerated supplier income recognition and inventory related items in the North America division (refer to Note 1b for further details) and to separately disclose results from discontinued operations (refer to Note 1a for further details).

Diluted earnings per share takes into account various share awards and share options including SAYE schemes, which are expected to vest, and for which a sum below fair value will be paid.

When the numerator in the earnings per share calculation is a loss, the weighted average number of ordinary shares applied is the basic value, rather than the diluted value, as the inclusion of potentially dilutive shares would improve the loss per share. As at 28 February 2026 the convertible bond has no dilutive effect as the inclusion of these potentially dilutive shares would improve earnings per share (28 February 2025 and 31 August 2025: No dilutive effect). Furthermore, the probability of the bond converting before its maturity in May 2026 is considered to be remote given the disparity between the bond conversion price and the current share price.

The calculation of earnings per share on a pre-IFRS 16 basis is provided in note A4 of the Glossary on pages 54 to 55.