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WH Smith Pushes Annual Results to December 16 After US Accounting Error Review

The retailer is allowing time for an independent Deloitte probe alongside PwC audit work after a £30 million North America profit overstatement.

Overview

  • Results for the year to August 31, previously scheduled for November 12, are now expected on December 16.
  • An independent Deloitte review into the timing of supplier income recognition in the US business is ongoing, with PwC completing required audit procedures.
  • WH Smith cut expected North America trading profit to about £25 million from £55 million and trimmed group profit guidance to around £110 million following the error.
  • Shares slumped when the overstatement was disclosed in August and fell again on Wednesday, leaving the company’s market value below £1 billion.
  • The group has exited its UK high-street estate in a sale to Modella and sold Funky Pigeon to Card Factor, concentrating the brand on about 1,300 travel-location stores worldwide.