FCA Investigates WH Smith After Accounting Errors Lead to Executive Changes and Financial Revisions
The Financial Conduct Authority (FCA) is investigating WH Smith over potential rule breaches concerning information shared with investors about accounting errors in its North American operations. The company disclosed that North America had overstated revenues by up to approximately £50 million, which led to downgraded profit forecasts and delayed annual results twice.
Following the accounting blunder, WH Smith's shares fell about 40%, and the group's chief executive, Carl Cowling, resigned after an independent review. The company plans to recover overpaid bonuses awarded to some executives during the period of the misreported results.
WH Smith, which sold its 480 High Street shops earlier this year, continues to operate around 1,300 outlets primarily located in railway stations, airports, and other transport sites. Interim chief executive Andrew Harrison stated that the company will focus on rebuilding confidence, strengthening financial controls and governance, and overhauling stores by 2026 to create one-stop-shops offering travel essentials, food-to-go, and health and beauty products.
