WH Smith probed by regulator over accounting error | EUROtoday

The UK’s monetary regulator is investigating WH Smith after the retailer uncovered accounting errors at its North America enterprise earlier this 12 months.

The Financial Conduct Authority (FCA) mentioned it was whether or not WH Smith had damaged guidelines over what info was shared with buyers.

Belatedly saying its annual outcomes, the corporate mentioned it was planning to get better “overpaid” bonuses awarded final 12 months to some executives.

WH Smith, which has misplaced its chief government and seen its shares fall 40% following the accounting blunder, mentioned it had been a tough finish to the 12 months.

WH Smith offered off its chain of 480 High Street outlets earlier this 12 months, and these shops have been rebranded TG Jones by its new proprietor.

The retained a part of the enterprise consists of about 1,300 branches in railway stations, airports and different transport websites.

Pre-tax revenue excluding one-off prices for the slimmed down enterprise was £108m for the 12 months to the top of August, WH Smith mentioned.

Forecasts for its revenue had been downgraded after it surfaced that WH Smith’s enterprise in North America had overstated revenues presumably by as a lot as £50m.

The firm delayed reporting its annual outcomes, initially due on 12 November, twice and chief government Carl Cowling resigned following an impartial evaluation into the accounting errors.

“It has been a difficult end to the year for the group. The board and I are acutely aware that we have much to do to rebuild confidence in WH Smith and deliver stronger returns,” mentioned Andrew Harrison, the corporate’s interim group chief government.

He mentioned the corporate was “committed to ensuring that we strengthen our financial controls and governance as we move forward.”

It mentioned it deliberate to overtake its shops in 2026 to create “one-stop-shops” promoting journey necessities, food-to-go and well being and wonder merchandise.