£30m Overstatement Prompts Delay and Profit Cut
- WH Smith postpones full-year results due to accounting error
- US profits overstated by £30 million
- Results now expected on 16 December 2025
- Independent review being conducted by Deloitte LLP
- Profit forecast for North American business cut to £25m from previous expectations of £55m
WH Smith has postponed its full-year results due to an accounting error that overstated US profits by £30 million. The company’s preliminary results, initially set for announcement on 12 November 2025, are now expected to be published on 16 December 2025. Deloitte LLP is conducting an independent review of the issue, which is expected to conclude by the end of November 2025. This will allow time for the group’s auditors, PwC LLP, to complete required audit procedures. The retailer has also cut its profit forecast for North American business to £25 million from previous expectations of £55 million, primarily due to accelerated recognition of supplier income in the division.
Factuality Level: 5
Factuality Justification: The article provides accurate information about WH Smith’s accounting error and its impact on the company’s financial results, with no clear signs of sensationalism or opinion masquerading as fact. However, it contains some minor issues such as incorrect dates (2025 instead of 2021) which may affect the overall rating slightly.
Noise Level: 7
Noise Justification: The article contains some relevant information about WH Smith’s accounting error and its impact on profit forecasts but is mostly focused on reporting facts without providing in-depth analysis or actionable insights. It lacks scientific rigor and intellectual honesty by not exploring the reasons behind the error or discussing potential solutions.
Financial Relevance: Yes
Financial Markets Impacted: WH Smith’s stock price and North American business
Financial Rating Justification: The article discusses WH Smith’s accounting error, its impact on profit forecasts, and the postponement of full-year results, which can affect the company’s financial performance and stock price.
Presence Of Extreme Event: b
Nature Of Extreme Event: Financial Crash or Crisis
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: An accounting error led to a £30m overstatement of US profits, causing a revision in profit forecast for North America and delaying the full-year results announcement. The impact is considered minor as there are no significant deaths or injuries, but it affects the company’s financial performance.
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