Peter Ranscombe: Retail trio in the spotlight, offering a mixed bag of figures

HIGH street retailers Clinton Cards, Mothercare and WH Smith will take the spotlight on Thursday during a slender week for updates.

Any signs of a pick-up in trading at WH Smith should be well received after a disappointing third quarter caused by the impact of the spring volcanic ash cloud on its airport and travel centre sites.

WH Smith reported a 4 per cent slide in like-for-like sales at WH Smith Travel, which operates 495 outlets at airports, train stations and motorway services, after the ash cloud and British Airways strikes caused widespread flight chaos.

But analysts at Seymour Pierce believe the fourth quarter will have been better for the group. WH Smith has already reassured that the travel disruption would not affect profits and Seymour Pierce is forecasting a rise in full-year pre-tax profits to 87 million, from 82m a year earlier.

A trading update from babycare products retailer Mothercare will be watched closely for its outlook on the UK market.

Its shares have come under pressure in recent weeks as investors worry about the group's reliance on the fragile UK market, despite expansion overseas and assurances that international growth will offset challenging UK conditions.

Mothercare now has 1,167 stores in 53 countries and posted a record year for its international arm in the year to 31 March, up 21 per cent.

In April it reported its first drop in UK like-for-like sales for 19 quarters and has already said it is "planning cautiously" for tougher times ahead.

Charles Stanley said the firm was still very dependent on the UK, accounting for around 55 per cent of group profits.

Full-year results from Clinton Cards come after July's warning that a poor performance at its stores in Ireland would leave adjusted profits in the year to the beginning of August at a similar level to last year.

Clinton, which has around 860 stores under the Clinton Cards and Birthdays brands, said trading had been impacted by the "disproportionately poor performance" in its 13 stores trading in Ireland.

The group had upgraded its guidance in March after tight control of its cost base and an "encouraging" first six months of the period.

But the Irish sales blow added to already difficult trading conditions on the UK high street, which led to the administration of loss-making subsidiary Birthdays last year. It bought back the chain's better performing stores from administrators in June.

Numis Securities slashed its expectations for full-year pre-tax profits to 11.7m from 16m after Clinton's July profit warning. But Numis added: "Clinton remains the clear market leader in card retailing and offers value on a lowly rating."

Punch Taverns chief executive Ian Dyson will preside over his first set of results when the pubs group reports full-year figures tomorrow.The former Marks & Spencer finance chief joined on 6 September, succeeding Giles Thorley.

Punch recently forecast stronger-than-expected full-year profits after improved summer trading at its revamped managed pubs estate.

Like-for-like sales rose 2.6 per cent in the fourth quarter to the end of August, which helped reduce the decline for the year as a whole to 2 per cent. It has benefited from the roll-out of food-led sites, such as Chef & Brewer, as well as the refurbishment of a quarter of the 800-strong estate.