WH Smith has downgraded the annual profits for its North American division by £30m in a surprise update to the London Stock Exchange.
The global travel retailer said a current financial review had “identified an overstatement of around £30m” of headline trading profit.
WH Smith now expected headline trading profit from the division for the year to 31 August 2025 of £25m, compared to previous guidance of £55m.
Group headline profits before tax and non-underlying items will now come in at approximately £110m, WH Smith said.
The overstatement in North America was “largely” due to the result of “accelerated recognition” of supplier income in the region.
WH Smith’s board has instructed accountancy firm Deloitte to undertake an independent and comprehensive review.
The group added it would provide a further update at its preliminary results announcement on 12 November.
Earlier in the year, the group completed its sale of its UK high street business to private equity firm Modella Capital for a slashed rate of up to £40m.
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