Overview
- WH Smith cut guidance to forecast North America headline trading profit of £5m–£15m and group profit of £100m–£110m for the year to 31 August.
- Andrew Harrison, head of the UK division, becomes interim chief executive as Carl Cowling departs immediately and remains employed until 28 February 2026 for handover.
- Deloitte identified inconsistent supplier‑income recognition, an underpowered finance team, insufficient systems and controls, and limited group oversight within a target‑driven, decentralised structure.
- The company says the overstatement largely reflects timing of supplier‑income recognition under accounting standards, with some outlets reporting the US profit impact could be as high as £50m versus an initial £30m.
- WH Smith is rolling out a remediation plan spanning a global supplier‑income policy, a new management system, a Finance Transformation programme, third‑party assurance, leadership reviews, and will detail prior‑year adjustments and additional costs at preliminary results on 16 December.