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The loss of dividend income today heaped more pain on WH Smith (LSE:SMWH) shareholders after the retailer vowed to focus on its balance sheet amid tougher trading conditions.

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The FTSE 250 company wants to get its leverage ratio below two times earnings, which compares with 2.9 times in this morning’s interim results after investment in new stores in North America and transformation costs drove net debt to £496 million.

A focus on costs and improved cash generation means the suspension of dividends, having paid 17.3p a share for 2025 and 33.6p in 2024. Shareholders last got 6p a share on 12 February.

The move was announced as new executive chair Leo Quinn downgraded full-year expectations in light of the Middle East conflict’s impact on passenger numbers and consumer confidence.

The group has cut its guidance range by £10 million, meaning it now sees an underlying pre-tax profit of between £90 million and £105 million in the year to 31 August.

The summer peak trading period will be key to the final outcome, with like-for-like revenues up by 2% in the first seven weeks of the second half. Growth was driven by North America after the UK division recorded a flat performance on the back of air passenger disruption.

The company, which recently opened flagship stores at Heathrow Terminals 3, 4 and 5, reported revenues growth of 5% to £748 million in the six months to 28 February. Underlying profits fell sharply to £3 million.

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Shares today reversed 46.5p to 582p, which is close to their low point for the year of 520p seen on 20 March and leaves the retailer with a market capitalisation of about £730 million.

They were more than 1,100p prior to last August’s disclosure of a £30 million profit overstatement in North America and subsequent Middle East disruption. WH Smith’s market value peaked at £3 billion when shares were 2,600p just before the pandemic.

Quinn, who is the former Balfour Beatty boss, needs the share price to hit 1,300p in order to realise £24.5 million as part of a five-year incentive structure put in place at his appointment.

He said his immediate priority is to ensure the right foundations are in place, including through a “relentless focus” on driving cash, cost discipline and balance sheet strength.

He added: “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.”

The retailer retains the support of broker Peel Hunt, which had a price target of 800p prior to today’s results. It said this morning: “WH Smith is a fine business, and we see much greater value in it in the longer term than the market does.

“However, it is difficult to be unequivocal with targets in the short term, as the Middle East situation is hard to predict. We stick with our underlying positive view.”

At the other end of the FTSE 250 index, Domino's Pizza Group (LSE:DOM)’ shares returned above 200p after the takeaway business reported an encouraging start to its financial year.

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Total system sales increased by 5.8%, including like‑for‑like growth of 4.5% as the company continued the momentum seen at the end of 2025. The initial trading performance of its new Chick ’N’ Dip range also met expectations.

Domino’s added that its costs are hedged for the current financial year and that it does not currently foresee any supply-related issues.

The shares fell sharply last year to their lowest level in a decade as the company and its franchisees grappled with the challenges of higher wages and employee taxation costs at a time of low consumer confidence.

They are up 18% since this year’s low point of 170p in late March, but Peel Hunt sees room for further upside based on a price target of 275p.

The City firm highlights several tailwinds including the World Cup, value for money versus restaurants and soft weather comparatives, adding that like-for-like sales momentum should help to rebuild the valuation from a current multiple of 10 times earnings.