WH Smith CEO resigns after probe into US accounts
WH Smith Plc chief Carl Cowling resigned on Wednesday after an independent probe found faults with the accounting treatment of its US business.
A review by Deloitte said treatment of supplier payments "was not consistent with the requirements of the relevant accounting standards".
The retailer also cut headline trading profit guidance for North America to a range of £5m - £15m, down from the revised expectation of around £25m announced in August and previous market expectations of £55m.
WH Smith, which now operates as a travel outlet retailer in August slashed guidance for its North American operations, citing problems with the way it had recognised payments from suppliers when they ran promotions or discounts to help boost sales.
"Whilst the issues identified in the Deloitte review arose in our North American division, I recognise the seriousness of this situation and as group CEO feel it is only right that I step down from my position," Cowling said in a statement.
Reporting by Frank Prenesti for Sharecast.com
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
