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WH Smith has delayed its annual results by more than a month as it grapples with the fallout from an accounting mistake which cost it almost £30 million more than profits at its US business.
The retailer said figures for the year to August 31, which were due on November 12, are now expected to be published on December 16, as the accounting giant Deloitte An independent review is ongoing into the accounting issue, which is not scheduled to be completed until the end of November.
“The revised date will provide time for the company to respond to the Deloitte review and allow the group’s auditors, PricewaterhouseCoopers, to complete the necessary audit procedures,” WH Smith said.
WH Smith saw its shares fall after it revealed in August that its business had made a profit North America When its finances were reviewed it was reported to be approximately £30 million overpriced.
This was due to a problem with how it calculated the amount of supplier revenue received – which caused it to be identified too early.
It means the group cut its expectations for full-year US trading profit to around £25 million – down from a previous £55 million forecast.
It cut its wider group profit forecast to around £110 million, sending shares falling by more than a third on the day.
The stock fell 1% in morning trading on Wednesday, with WH Smith’s stock market valuation halved over the past year, falling below £1bn for the first time in recent years.
London-listed business sells off its high street chain of around 480 stores hobbycraft Owner Modella Capital in June.
As part of the deal, the WH Smith name will disappear British High Streets and the brand will be replaced by TGJones.
WH Smith now focuses solely on stores in global travel locations, such as airports, railway stations and hospitals, totaling around 1,300 worldwide, the brand is housed in this estate.