WH Smith PLC on Wednesday launched a £50 million share buy back, and pledged further returns to shareholders amid strong trading.

In the fourth-quarter ended August 31, the Swindon-based travel operator and retailer said group revenue rose 6% on-year, while like-for-like revenue advanced 4%. For the full-year, revenue was 7% higher, rising 5% like-for-like.

In Travel, full-year like-for-like sales increased by 7% and by 6% in the fourth quarter. But high street sales fell by 2% for the full-year and 3% in the fourth quarter.

Overall, WH Smith expects the outcome for the year to August 31 to be in line with expectations.

Shares in WH Smith jumped 13% to 1,384.00 pence each in London on Wednesday morning.

‘We have ended the financial year in a strong position, delivering a performance in line with our expectations with good growth across our Travel businesses. Our UK division performed particularly well over the peak summer trading period,’ Chief Executive Carl Cowling said.

‘We are also today announcing the launch of a £50 million share buyback, which reflects strong ongoing cash flow, the receipt of the pension fund buyout cash return, as well as the strength of our balance sheet, with leverage now within our target range.’

WH Smith said it intends to return surplus cash to investors in line with its capital allocation policy, which includes a targeted leverage range of 0.75 times to 1.25 times. At August 31, WH Smith said its leverage was around 1.4 times.

WH Smith said a buy-in of its defined benefit pension scheme has been sealed, resulting in a cash refund to the company of £75 million, and a transfer of an investment fund of £10 million ‘which will convert to cash over the next two years’.

Including this, the retailer estimated its leverage would fall to 1.1 times.

WH Smith announces annual results on November 14.

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