WH Smith is being investigated by the Metropolis watchdog after the corporate revealed accounting failures in its US operations.
The Monetary Conduct Authority (FCA) mentioned: “The investigation issues potential breaches of UK Itemizing Ideas and Guidelines and Disclosure and Transparency Guidelines in relation to the issues introduced by WH Smith PLC on 19 November 2025.”
On that day WH Smith revealed that Carl Cowling, its chief govt of six years who had presided over the sale of the corporate’s UK high street business earlier within the yr, had resigned after an independent review into an overstatement of earnings.
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Specialists from Deloitte discovered WH Smith’s North America division – its key space for development – had been recognising provider revenue incorrectly.
Revenue forecasts have been revised sharply decrease because of this – its second such transfer throughout a yr that has seen shares tumble by greater than 40%.
The corporate mentioned on Friday that it anticipated profitability subsequent yr to be static on 2025 monetary yr ranges – reported at £108m – because it critiques a few of its North American companies within the wake of the accounting issues.
Its annual outcomes have been delayed twice because it obtained to grips with the problems.
WH Smith plans to get better overpaid bonuses from its former senior executives following earlier revenue restatements.
The corporate’s North American assessment contains its InMotion enterprise, which sells digital and digital equipment primarily in airports.
Interim boss Andrew Harrison instructed traders: “The Board and I are acutely conscious that we’ve a lot to do to rebuild confidence in WH Smith and ship stronger returns as we transfer ahead.
The inventory was an extra 6% down on the market open however that decline later petered out.
