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WH Smith Boss Steps Down After US Accounting Probe
An independent Deloitte review found US accounting errors overstating profits by up to £50 million, prompting profit warnings and leadership changes at WH Smith.
- This past week, WH Smith chief executive Carl Cowling stepped down after Deloitte found accounting issues in the US division, and Andrew Harrison, head of WH Smith's UK division, was appointed interim chief executive.
- Deloitte's findings showed accounting shortcomings that led WH Smith to revise US profit expectations to between 5 million and 15 million, down from 55 million.
- Company reviews found weaknesses in the US finance team and insufficient systems, controls and review procedures for supplier income accounting across commercial and finance functions.
- WH Smith now expects group headline trading profit between £100 million and £110 million, down nearly 55%, while shares fell almost 50% since August but rose 5% in Wednesday trading.
- The board is reviewing North America leadership and monitoring a recovery plan after appointing a new US chief executive in June; figures for the year to August 31 are expected on December 16.
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Oxford Mail+3 Reposted by 3 other sources
WH Smith boss steps down after US accounting probe
The group downgraded its full-year expectations once again as the profit shortfall in the US is set to be greater-than-feared.
·Oxford, United Kingdom
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Coverage Details
Total News Sources23
Leaning Left2Leaning Right1Center8Last UpdatedBias Distribution73% Center
Bias Distribution
- 73% of the sources are Center
73% Center
L 18%
C 73%
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