WH Smith PLC (LSE:SMWH) has released the results of an independent Deloitte review, which uncovered irregularities in how supplier income was recorded within its North America division. These accounting issues led to inflated income figures and have prompted the company to roll out a broad remediation plan. Measures include tightening internal financial controls, refreshing leadership, and correcting inventory assessments. As a result, expected profits for the North America business are being revised sharply lower, and the group has announced the resignation of Group CEO Carl Cowling as it works to restore confidence and strengthen operational discipline across the region.
Although WH Smith continues to demonstrate solid underlying financial performance, its overall outlook is weighed down by bearish technical signals and an elevated valuation. High leverage levels and concerns around potential overvaluation add risk, while limited recent earnings-call detail constrains further visibility.
More about WH Smith
WH Smith PLC is a well-established retailer operating across travel and high street formats, offering products such as books, stationery, snacks, and travel essentials. The group has a strong footprint in the UK and an expanding international presence, particularly in airports, railway stations, and other travel hubs.
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