Particle.news
Download on the App Store

WH Smith CEO Quits After Deloitte Review Finds US Accounting Failures

A Deloitte probe found flawed supplier‑income accounting in the North America division, triggering profit downgrades that prompted a leadership shake‑up.

Overview

  • Deloitte’s independent review identified inconsistent treatment and overstated recognition of supplier income in the US arm, plus weak finance staffing and inadequate controls.
  • Carl Cowling resigned as group chief executive with immediate effect and will remain employed until 28 February 2026 to support an orderly handover.
  • UK chief Andrew Harrison has been appointed interim CEO while the board begins a search for a permanent successor.
  • The company cut guidance again, forecasting North America headline trading profit of £5–15m and group profit of £100–110m for the year to 31 August, with preliminary results due on 16 December.
  • WH Smith outlined a remediation plan including a finance transformation, accelerated rollout of a supplier‑income management system by early 2026, third‑party assurance and expected non‑underlying FY25 costs of up to about £10m, after a share slump that has erased roughly £600m in value since August.