UK Retailer Faces Delay Amidst Errors in Forecasts and Audit Review
- WHSmith delays annual results due to accounting issues
- Errors in accounting systems led to profit forecast overstatement
- Delayed publication from 12 November to 16 December
- Deloitte investigating the issue
- PricewaterhouseCoopers LLP completing audit procedures
- £30m overstatement in North American arm’s forecast profit
- Accelerated recognition of supplier income caused error
- Rebrand and sale of UK high street business to Modella Capital
WHSmith has delayed the release of its annual results by over a month due to accounting problems. The travel retail company was initially set to report preliminary results on November 12 but has rescheduled the publication for December 16, as Deloitte investigates errors in its accounting systems that led to profit forecasts being inflated by tens of millions of pounds. The audit firm stated that the revised date would give the company time to respond to the review and allow PricewaterhouseCoopers LLP to complete necessary audit procedures. In August, WHSmith’s shares fell following a £30 million overstatement in its North American arm’s forecast profit, which the retailer attributed to the accelerated recognition of supplier income in the division. This news comes after the company underwent a major rebrand and agreed to sell its UK high street business to Modella Capital for £76m earlier this year, focusing on its travel retail arm.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about WHSmith’s delay in publishing its annual results due to accounting issues and the overstatement of profit forecasts. It also mentions the reasons for the error and the involvement of audit firms Deloitte and PricewaterhouseCoopers LLP. The article is focused on the main topic without any unnecessary digressions or sensationalism.
Noise Level: 3
Noise Justification: The article provides relevant information about WHSmith’s accounting issues and the delay in publishing its annual results. It also mentions the reasons for the delay and the impact on the company’s shares. However, it lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: WHSmith’s shares fell in August due to a £30m overstatement in its forecast profit for its North American arm, and the delay of annual results may impact investor confidence. The company is undergoing an audit by Deloitte and PricewaterhouseCoopers LLP.
Financial Rating Justification: The article discusses financial issues within WHSmith, including accounting errors and a delayed report, which can affect the company’s stock price and investor sentiment.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text
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