FCA Investigates WH Smith Over Accounting Errors Amid Leadership Changes
The Financial Conduct Authority (FCA) is investigating WH Smith over accounting errors in its North America business and potential breaches of investor-disclosure rules. The errors led to an overstatement of North America revenues by as much as £50 million.
WH Smith belatedly announced its annual results, which were delayed twice, and revealed it would recover overpaid bonuses awarded to some executives. The group reported a pre-tax profit, excluding one-off costs related to its slimmed-down business, of £108 million for the year to August.
Following an independent review into the accounting discrepancies, chief executive Carl Cowling resigned. Interim group chief executive Andrew Harrison has pledged to strengthen financial controls and governance. Harrison also outlined a 2026 store overhaul plan aimed at creating one-stop shops for travel essentials, food-to-go, and health and beauty products.
Earlier this year, WH Smith sold 480 High Street shops, which have been rebranded TG Jones. The retained business now includes around 1,300 branches located in transport hubs. Since the accounting blunder was revealed, the company’s shares have fallen by approximately 40%.
