Travel retail specialist WHSmith has moved its full-year results back as accountants review a profits overstatement at its flagship North American business.
WHSmith had originally intended to issue preliminary results on November 12, when it hoped to update on the findings of an investigation into the issue.
The review centred around recognition of supplier income in North America, likely to have resulted in an overstatement of around £30m of headline trading profit at the division.
However, WHSmith has moved the date of its results to December 16. The retailer said: “The independent and comprehensive review currently being undertaken by Deloitte is continuing and expected to conclude by the end of November.
“The revised date will provide the company time to respond to the Deloitte review and allow the group’s auditors, PricewaterhouseCoopers, to complete the required audit procedures.”
The accounting problem emerged as WHSmith was embarking on a new chapter in its history. In recent years its travel arm has been the star of the group and will be its entire focus in future, following the sale of its high street arm in June to investor Modella.
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