Accounting gaffe delays outcomes at WH Smith

WH Smith has delayed releasing its annual financial results in the wake of an accounting blunder.

The retailer now expects to unveil its latest figures on Friday – having previously said they would be released on Tuesday.

The firm told shareholders the delay would give auditor PwC ‘further time to complete the required audit procedures’. It is the latest hitch to the results which were originally to be published on November 12.

Carl Cowling last month resigned as chief executive after an independent review by Deloitte found a number of ‘shortcomings’ as the group overstated profits in the US business by as much as £50m.

Hitch: WH Smith told shareholders the delay would give auditor PwC ‘further time to complete the required audit procedures’

The retailer, which sold its High Street stores this year to focus on its travel locations, first revealed accounting issues in August.

Shares tumbled by nearly 40 per cent after it discovered the trading profit in North America had been overstated when reviewing its finances.

WH Smith slashed profit forecasts as a consequence, warning its US arm will make £5m to £15m for delayed full-year results – far below the £55m once expected, and then the £25m after the accounting issue first emerged.