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WH Smith CEO Resigns After Deloitte Review Finds US Accounting Failures; Profit Outlook Cut

A Deloitte review blamed supplier‑income accounting failures in North America, triggering a profit downgrade that precipitated a leadership change.

Overview

  • Andrew Harrison, head of the UK division, becomes interim chief executive as Carl Cowling exits immediately and stays through the end of February for handover.
  • WH Smith now guides North America headline trading profit at £5m–£15m and group profit at £100m–£110m for the year to 31 August, with full-year results due 16 December.
  • Deloitte cited inconsistent supplier‑income treatment, insufficient systems and controls, weaknesses in the finance team, and limited group oversight under a target‑driven, decentralised structure.
  • The company says the US overstatement centered on timing of supplier‑income recognition and was initially flagged at about £30m, though some reports cite figures as high as £50m.
  • WH Smith announced a remediation plan spanning a global supplier‑income policy in North America, a new management system targeted for early 2026, a finance transformation and third‑party assurance, with up to £10m in FY25 non‑underlying costs and potential prior‑year adjustments; the August disclosure wiped roughly £600m off its market value, and former finance chief Robert Moorhead withdrew from a planned Greggs board role.