WH Smith is continuing work to turn around its business

The firm added that publishing house Hodder Headline is be sold or demerged with proceeds returned to shareholders.

It also announced plans to make a one off payment of �120m ($221m) to boost its pension fund.

Earlier this year, WH Smith admitted its performance was "unacceptable", and it recently saw off a takeover attempt from venture capitalists Permira.

Permira dropped its plans on Friday after failing to reach a deal with WH Smith's pension fund trustees, who had insisted on a cash injection of about �275m.

Winning back the shoppers

WH Smith said it planned to continue refocusing the business on its core retail and newspaper distribution activities in a bid to increase their profitability.

Kate Swann, WH Smith's chief executive, said the company aimed to "reinvigorate" itself.

"We aim to return the UK High Street Retail business to its role as Britain's most popular stationer, bookseller and newsagent," she said.

Ms Swann admitted the firm had lost out to competition from supermarkets and had not helped itself by providing "an inconsistent product offer and an inadequate strategic response to competition".

But she said the stores still had great potential.

"The business has unique strengths through its extensive store portfolio, strong market shares and high customer footfall.

"Our plans encompass improved efficiency through cost savings and margin enhancement, while rebuilding the competitiveness and depth of our product ranges."