WH Smith Under Regulatory Pressure Amid Investigation

about 1 month ago

Klo Malay

"So WH Smith is facing a probe. So WH Smith is having a real tough time at the moment. We remember of course the accounting error from a few months back where it revealed that it had overstated its result in the North American business by 30 million pounds. And since then that has triggered a bunch of setbacks for the company. We've seen shares plunging, they've had to delay their results twice, they've had to cut their outlook twice as well, and the CEO resigned. And today there's obviously yet another setback with the financial regulator in the UK, the FCA, opening an investigation into the company. And the FCA can take enforcement actions when companies have misleading public announcements."

WH Smith is currently facing significant setbacks including an FCA investigation, dividend cuts, and delayed results following an earlier accounting error. These issues, combined with management upheaval, have led to a steep decline in share price and raised serious concerns about the company's credibility.

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