WH Smith is being investigated by the City watchdog after the company revealed accounting failures in its US operations.
The Financial Conduct Authority (FCA) said: «The investigation concerns potential breaches of UK Listing Principles and Rules and Disclosure and Transparency Rules in relation to the matters announced by WH Smith PLC on 19 November 2025.»
On that day WH Smith revealed that Carl Cowling, its chief executive of six years who had presided over the sale of the company’s UK high street business earlier in the year, had resigned after an independent review into an overstatement of earnings.
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Experts from Deloitte found WH Smith’s North America division – its key area for growth – had been recognizing supplier income incorrectly.
Profit forecasts were revised sharply lower as a result – its second such move during a year that has seen shares tumble by more than 40%.
The company said on Friday that it expected profitability next year to be static on 2025 financial year levels – reported at £108m – as it reviews some of its North American businesses in the wake of the accounting problems.
The stock was a further 2% down in early trading.
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