WH Smith CEO quits after accounting error that wiped almost £600m off value

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WH Smith’s chief executive has stepped down with immediate effect after a review found accounting failures in its North American division, prompting the travel shop chain to slash its profit outlook.Nearly £600m was wiped off the retailer’s market value in a 42% one-day share price fall when the blunder emerged in August.It came shortly after the sale of its high street business, which has since been rebranded as TGJones by its new owners.WH Smith shares climbed by more than 7% on Wednesday after Carl Cowling’s departure was announced, although they are still trading substantially below the levels seen before the August sell-off.Cowling, who had been group chief executive for six years, will be replaced on an interim basis by the company’s UK chief executive, Andrew Harrison, until a permanent replacement is found.

An independent investigation by Deloitte said it had found “shortcomings” in the retailer’s North American division that exaggerated supplier income, leading the group to overstate profits at its US business by as much as £50m.The review found weaknesses in the composition of the US finance team, as well as insufficient systems, controls and review procedures for supplier income in its commercial and finance teams.It also found the group had limited oversight of US finance processes.Annette Court, the WH Smith chair, apologised and said the company recognised “the importance of strengthening controls, governance and reporting procedures across the group”.She said: “Our priority now is to rebuild trust and credibility and to improve the performance and profitability of our North America division.

We are confident that the actions we have taken and will continue to implement over the months ahead will ensure a strong foundation for the business going forward.”Cowling said: “Whilst the issues identified in the Deloitte review arose in our North American division, I recognise the seriousness of this situation and as group CEO feel it is only right that I step down from my position.”WH Smith, which is now focusing on its travel business and branches in airports and railway stations, had previously identified North America as a growth opportunity.It warned that it expected profits for its US arm for 2024-25 to be between £5m and £15m, down from the £55m originally forecast 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 promotionWH Smith’s group profits are forecast to be between £100m and £110m for the year to 31 August, about 55% lower than last year.

Cowling will remain employed by WH Smith until the end of February to ensure an orderly handover.The company said it would look to new leadership to “implement the remediation plan” and take the company through the next phase of its strategy to focus on its shops at global travel hubs.Dan Coatsworth, the head of markets at the broker AJ Bell, said it was unlikely any chief executive could have survived a “catastrophic” episode in which nearly £600m was wiped off a company’s share price overnight.He said: “Even if Cowling hadn’t resigned, his credibility at WH Smith was shattered by the scale of value destruction straight after selling the UK high street business.That strategic shift was meant to be a defining moment for the company, but it has gone down in history for the wrong reasons.

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Georgina Hayden’s quick and easy recipe for roast hake with caper anchovy butter | Quick and easy

I love this one-tray dinner; it feels elegant but easy, and worthy of both a midweek meal and if you are entertaining. The punchy anchovy and garlic butter does all the hard work, and gives the impression of more effort than was actually exerted. But what to serve it with, I hear you ask? Well, it wouldn’t be out of place with creamy mashed potato, buttery polenta or a salad. Just make sure to baste the fish halfway through cooking, to get all the flavour and juices back into it.Prep 10 min Cook 30 min Serves 42 garlic cloves, peeled5 anchovies 4 tbsp capers ½ bunch chives 1 lemon 90g unsalted butter, cut into cubesSea salt and black pepper250g sweet heart cabbage, or other greens2 onions, peeled and halved2 tbsp olive oil4 150g hake or cod fillets, skinned and, if need be, pin-bonedHeat the oven to 220C (200C fan)/425F/gas 7

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Sami Tamimi’s recipes for prawn and tomato stew with fregola, and herby quick-pickled vegetable salad

Hearty and warming, this prawn and tomato stew with fregola is a comforting bowl, with the fresh pesto brightening every bite. It pairs beautifully with a crisp, fragrant, quick-pickled vegetable salad; the freshness cuts through the richness of the stew perfectly. I’ve always loved leafy, lively salads, and I could honestly eat one with every meal, every day.Prep 20 min Cook 50 min Serves 4220g cherry tomatoes 60ml olive oil 1 large onion, peeled and finely chopped (180g)3 garlic cloves, peeled and crushed2cm piece fresh ginger, peeled and finely grated (15g)1 green chilli, finely chopped, seeds and all1½ tsp coriander seeds, lightly crushed in a mortar1 tsp cumin seeds, lightly crushed in a mortar6 cardamom pods, lightly bashed 15g dill, finely chopped2 tsp tomato paste400g tinned chopped tomatoes Salt and black pepper 120g fregola 400g frozen king prawns, defrosted, or fresh, peeled and deveinedFor the coriander pesto20g coriander, roughly chopped1 green chilli, finely chopped, seeds and all35g pine nuts, lightly toasted 3 tbsp olive oil1 lemon, zest finely grated to get 1½ tsp, then cut into wedges, to servePut a large saute pan on a high heat. Toss the tomatoes with a teaspoon of oil and, once the pan is very hot, add the tomatoes and cook, shaking the pan a few times, for about five minutes, until blistered and deeply charred all over

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How to make risotto alla milanese – recipe | Felicity Cloake's Masterclass

Risotto alla milanese is, like the city it calls home, elegantly simple, but very rich. The saffron that gives the dish its striking colour is rightly expensive (it takes about 150 flowers to produce a mere gram), but you don’t need much and, though it’s often served alongside osso buco, I think it makes a fine meal on its own with a bitter-leaf salad.Prep 5 min Cook 30 min Serves 41 onion 75g butter, or 15g butter plus 60g bone marrow350g risotto rice (carnaroli, arborio, vialone nano)1 litre beef stock, or chicken or vegetable stock75ml dry white wine (see step 4)1 level tsp saffron threads75g finely grated parmesan, or grana padano or a vegetarian alternativePeel and finely chop the onion; the aim is for it almost to disappear into the dish, rather than remaining as distinct chunks, so take your time over doing this (you could substitute two shallots, if you prefer – their sweetness works particularly well with the flavour of the wine and cheese).Melt a generous tablespoon of the butter in a frying pan set over a medium-low heat, then fry the chopped onion until soft, golden and limp, but not coloured.Turn the heat up to medium-high, add the rice and fry, stirring constantly, until the grains are hot and starting to turn translucent around their edges

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2210 By Natty Can Cook, London SE24: ‘Much more than just posh jerk chicken at fancy prices’ – restaurant review | Grace Dent on restaurants

There’s an attention to detail in every dish that makes this place more than fit for a special occasionIt’s 6pm in Herne Hill, south-east London, and I’ve popped out for some Caribbean food wearing fancy athleisure wear. Yoga trousers and a smart hoodie, but PE kit nonetheless. And, once I arrive at 2210 By Natty Can Cook, I realise I am severely underdressed.When chef Nathaniel Mortley announced that he was opening a restaurant that aimed to celebrate Caribbean culture “in style” and to win a Michelin star, his loyal Instagram following, as well as their families and friends, took the brief and dressed accordingly. As fancily plated ackee and saltfish spring rolls passed by, as well as a lot of rum punch, I rustled in my handbag for some bigger earrings and more makeup

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‘Simple, well-crafted and excellent’: supermarket chutneys, tasted and rated | The food filter

Our resident taster dipped, spread and dolloped his way through 10 chutneys in time for Christmas, so you don’t get in a pickle choosing one for yourself The fair price for 14 everyday items, from cleaning spray to olive oilThe Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.Chutney is a heritage recipe that’s been largely unchanged for a century, and some of the best versions are the simplest and most traditional. That said, even when it’s made on an industrial scale, chutney usually features just fruit, sugar, vinegar and perhaps some pectin

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It’s not all about roasting on an open fire – there’s so much more you can do with chestnuts

If I’d ever spared a thought for how chestnuts – the sweet, edible kind, not the combative horsey sort – were harvested, I would probably have conjured rosy-cheeked peasants bent low in ancient forests and filling rough-hewn hessian sacks by hand. Back-breaking labour, sure, but so picturesque!I was delighted, therefore, while on a writing retreat in Umbria last month, to get the opportunity to watch an elderly couple manoeuvre a giant vacuum around their haphazard orchard, followed by their furious sheepdog. The fallen crop was sucked into a giant fan that spat their bristly jackets back out on to the ground, and the nuts then went to be sorted by other family members on a conveyor belt in the barn – the good ones to be sold in the shell, the less perfect specimens swiftly dropped into a bucket for processing.Later in the week, a lorry turned up in the village square to pick up bags from other small local producers, and that evening I roasted a pan of chestnuts on the fire with new appreciation, while loudly bemoaning the disappearance from the streets of London of the chestnut sellers of my childhood (though this makes me sound positively Dickensian, I can confirm that I’m talking about this century. Note also that Nigel Slater is less starry-eyed on the subject