WH Smith under FCA investigation following accounting issues and profit downgrades
The Financial Conduct Authority (FCA) is investigating WH Smith for potential breaches of the UK Listing Principles and Rules, as well as Disclosure and Transparency Rules. These concerns relate to issues WH Smith announced on 19 November 2025.
On that date, WH Smith disclosed that Carl Cowling, who had served as CEO for six years and oversaw the sale of the UK high street business earlier in 2025, resigned after an independent review found an earnings overstatement. Deloitte's review revealed that WH Smith's North America division was recognising supplier income incorrectly, which led to downward revisions to the company's profit forecasts.
This revision marked the second profit downgrade for WH Smith in 2025. As a result of the accounting problems, shares in the company have fallen more than 40% over the year and declined about 2% in early trading following these developments.
North America remains a key growth area for WH Smith, but the company is currently reviewing its operations in this region due to the accounting issues. WH Smith expects its profitability in 2026 to be broadly flat compared to 2025 levels as it continues this review.
