Mixed fortunes for stars WH Smith, Diploma and James Fisher

WH Smith shares are treading water ahead of CEO change, but these two other mid-caps are on the move. 

A trademark WH Smith (LSE:SMWH) performance of strong travel growth and high street margin protection today boosted hopes that the retailer's CEO will leave on a high in October.

Stephen Clarke is quitting after seven years in which he has kept the retail chain's dividend and share price on a steady growth path, even if the latter's progress has slowed in recent weeks.

The current uncertainty for the FTSE 250 index stock is likely to reflect the upcoming management handover to internal candidate Carl Cowling, as well as the heightened risk of Brexit and threat of weaker airport passenger numbers this summer.

Investors may also be waiting for more guidance on the performance of November's acquisition of InMotion, which has the potential to be a game-changer for WH Smith as a platform for growth in the digital accessories sector.

InMotion has doubled the size of the Smiths business outside the UK, with the international travel arm now boasting more than 425 units and a presence in 100 airports in 30 countries. Three InMotion stores outside North America include one at Leeds Bradford airport. 

WH Smith said in today's end-of-year trading update:

"We see good scope to grow InMotion both in the US and internationally. In addition, we see further opportunities to grow our news, books and convenience format in the international travel retail market, where we have a small market share."

The wider travel business has maintained its strong performance, with good sales across all channels, including in hospitals. Meanwhile, the profit-focused strategy of the high street arm continues after cost savings and margin improvements in the year to the end of August 31.

The company said:

"We continue to focus on our successful stationery business, developing new ranges and allocating additional space to the category in our high street stores."

From Clarke's first day in charge at 718p, the stock peaked at 2,400p in December 2017 before a more uncertain period fluctuating at around the 2,000p mark in recent months. The stock fell 3% to 1,938p today, although analysts at Peel Hunt continue to think the stock has the potential to reach 2,550p.

Source: TradingView Past performance is not a guide to future performance

As well as WH Smith, two other highly-regarded FTSE 250 stocks issued updates today.

Diploma, whose three divisions focus on supplying essential products and services to customers in the life sciences, heavy machinery and hi-tech industries, said it was on track for another good performance in 2019.

Underlying revenues growth of 5% in the year to 30 September has been accompanied by positive contributions from acquisitions and modest margin progression.

Over the last 10 years, the group has grown adjusted earnings per share at an average of 13% per year through this combination of underlying growth and acquisitions.

Listed on the London Stock Exchange since 1960, the firm developed its acquisitive streak in the 1970s and 1980s. Another wave of deals followed in the 1990s when the original businesses matured into cyclical, lower margin businesses.

Its shares are near to a record high, although they've been somewhat range-bound this summer after peaking at 1,634p in April. They were up 5p at 1,557p following today's year-end update.

Source: TradingView Past performance is not a guide to future performance

Like Diploma (LSE:DPLM), marine services group James Fisher is another well-established London-listed stock trading near to a record high. The stock peaked at 2,260p in March but has resisted further progress since then, with shares down 4% to 2,045p after today's half-year results.

While underlying earnings per share fell 4% to 33.2p, CEO Nick Henry said the phasing of projects meant the year would be more weighted towards the second half. The CEO, who is due to leave the business on 1 October, reported good strategic progress in H1, with strong performances from the offshore oil and tankships divisions.