Summary
WH Smith is under investigation by the UK's financial regulator due to accounting mistakes in its North American operations. The company announced plans to recover bonuses and reported a significant drop in share value after the errors were revealed.
Key Facts
- WH Smith is being investigated by the UK's Financial Conduct Authority (FCA) for possible rule violations related to investor information.
- The company found accounting errors in its North America business, which may have overstated revenues by up to £50 million.
- WH Smith plans to recover bonuses given to executives last year as a response to these errors.
- The company's chief executive, Carl Cowling, resigned after an independent review of the situation.
- The value of WH Smith shares fell by 40% due to the accounting mistakes.
- WH Smith sold its 480 High Street stores, which were rebranded by a new owner as TG Jones.
- The business retained around 1,300 branches located in places like airports and railway stations.
- The company's pre-tax profit, not counting special costs, was £108 million for the year ending in August.
