FCA makes inquiries into WH Smith accounting error that wiped almost £600m off value
The City watchdog has contacted WH Smith to find out more about its accounting error that wiped almost £600m off the company’s stock market value overnight and led to the departure of its chief executive.The Financial Conduct Authority (FCA) said it had started making inquiries to assess whether the company had breached UK disclosure rules for listed companies, but was yet to launch a formal investigation.“We are aware of the reports and we are engaging with the firm,” a spokesperson said.The newspaper, books and stationery chain cut financial forecasts in August and launched an independent review led by Deloitte after it discovered an accounting blunder at its North American arm.The revelation came just a few months after the chain sold its high street business, which has since been rebranded as TGJones by its new owners.
WH Smith had identified North America as a growth opportunity in its new focus on its branches in airports and railway stations,The Deloitte review found profits at the division had been overstated by as much as £50m, and after its publication on 19 November, Carl Cowling stepped down as WH Smith chief executive,He has been replaced on an interim basis by the company’s UK chief executive, Andrew Harrison, until a new leader is found,The FCA’s engagement with listed companies is mainly through inquiries, rather than full investigations, and it believes its non-enforcement direction powers can achieve results without fines,WH Smith discovered the accounting error while preparing its year-end results, and said in August it was “largely” because it had logged some of its income too early.
The mistake related to arrangements it has with suppliers, which offer rebates if the retailer hits sales targets on certain items and payments for marketing and promotions.It is understood that income should have been logged in the accounts for the next financial year rather than for the 12 months to 31 August.WH Smith warned earlier this month that it expected profits for its US arm for the year to 31 August to be between £5m and £15m, down from the £55m originally forecast by analysts, and below the £25m announced on 21 August when the accounting blunder was first revealed.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionAs a result, the group’s full-year profits are now expected to come in between £100m and £110m, about 55% lower than the previous year.Cowling is staying on at the company until the end of February to ensure an orderly transition.
WH Smith wants the new leader to “implement the remediation plan” and take it through the next phase of its shift to focus on its shops at global travel hubs.The group’s shares rose by 1.5% on Tuesday, but are still down 45% so far this year.WHSmith was contacted for comment.
The Breakdown | A November to remember: let’s celebrate the good in international rugby
We turn the dial towards whimsy and revisit some of the moments that made the autumn internationals irresistibleSouth Africa and Ireland played out a slugfest for the ages and the discourse has been dominated by yellow cards and flying shoulders to the head. England held off a spirited Argentina to claim their 11th consecutive Test win and it seems all anyone can talk about is some alleged after-the-whistle shoving. Wales and New Zealand traded 11 tries in a ding-dong encounter and yet the narrative is weighed down by caveats concerning fading empires.What, exactly, is the point of Test rugby? Beyond winning World Cups and regional crowns, does this chaotic sport hold any value? A bit of spice elevates almost every dish, sure, but it has felt as if this autumn’s brilliant rugby fare has been smothered in a sauce with a needlessly high Scoville count.So, for all the romantics, for anyone inclined to see their incomplete pint of Guinness as half full, for those who believe that elite rugby has never been more entertaining or more competitive or more interesting, let’s turn the dial towards whimsy and revisit some of the moments that made this autumn irresistible
The NBA’s dress code was seen as policing Black culture. Instead it inspired a fashion revolution
Twenty years after the league introduced its controversial policy, many players see it as helping them develop self-expressionLonzo Ball froze in confusion. The question – “What do you think about the NBA dress code?” – hung in the air for a second before he cracked a sheepish grin.“There’s a dress code?” he said, smiling.Twenty years after the introduction of a rule that once roiled the league and ignited a culture war over image and identity, one of the NBA’s current players didn’t even know it existed.“Now do-rags are flying, along with jerseys and baggy stuff,” said Ball, a point guard for the Cleveland Cavaliers
Tennis burnout on the rise as grind of long season brings stars to their knees
Elina Svitolina simply could not go on. Her hopeful start to the 2025 season had given way to despair as the mental and emotional strain of constant competition, travelling and stress left its mark. The 31-year-old understood that competing would only make things worse and, in September, Svitolina decided to prematurely end her season, citing burnout.The world No 14 is not alone in feeling suffocated by her sport. This has been another year filled with incredible performances and gripping matches, but the past 11 months have also been defined by the physical and mental ailments endured by many of the sport’s stars
Australia rolls out red carpet to England fans with newfound time on their hands
Regional centres are rolling out the red carpet to travelling England cricket supporters with newfound time on their hands, and last-minute side trips are becoming the norm for the Barmy Army as Bazball changes what it means to tour Australia.The two-day Perth Test was unusually brief, leaving Cricket Australia with a $4m shortfall and broadcasters bereft of live content to fill their schedules.England’s commitment to attacking cricket – the side has drawn just twice in three years under head coach Brendon McCullum and never outside of Manchester – also has wider consequences.English fans in Perth may have suffered through the defeat in the stands, but the result opened up their diaries for non-cricketing activities. Some visited Rottnest Island to see the quokkas, others went to wineries in Margaret River, while dozens gathered in Fremantle on Monday to enjoy a warm if typically windy spring afternoon in Perth
Travis Head’s devastating knock gives Australia’s selectors a dilemma
Accidents do not come much happier. Usman Khawaja’s mid-game back problem was annoying for the player and potentially damaging for his team, until it wasn’t. Clearing out the regular dry-powder opener created space in the final stanza of the Perth Test, allowing Travis Head to finish off England with the gory certainty and splatter count of a Mortal Kombat fatality move. Sometimes you mash the buttons and it all just works.Consider an Ashes innings of 123 from 83 balls, on a bouncy pitch where two other players nudged 50, in an effort that did not just win the match, but has sent the opposition into a demoralising tailspin
England asked for CCTV footage of Tom Curry’s alleged tunnel scuffle
England have been told to provide CCTV footage of the alleged tunnel bust-up between Tom Curry and Felipe Contepomi after Argentina lodged a formal complaint and demanded an investigation into the incident.It is understood that Six Nations Rugby – which organises the autumn Tests – has asked for England to provide footage as well as a formal statement before deciding whether to begin disciplinary proceedings. The Rugby Football Union is also expected to provide any other relevant video captured of the incident.In an extraordinary press conference after England’s 27-23 victory on Sunday, Contepomi described Curry as a “bully” and accused the flanker of shoving him in the tunnel and telling him to “fuck off”. Contepomi also claimed Curry had “broken” the knee of Juan Cruz Mallía with a “reckless” tackle in the 75th minute – the incident that sparked the post-match bad blood
UK to extend sugar tax to cover bottled milkshakes and pre-packaged lattes
Peak pizza? Domino’s boss who launched shift towards chicken ousted
AI could replace 3m low-skilled jobs in the UK by 2035, research finds
‘It’s hell for us here’: Mumbai families suffer as datacentres keep the city hooked on coal
England warned ‘wickets fall in clumps’ with pink ball under lights at the Gabba
Undercooked England will not play for a year until Rugby League World Cup