WH Smith has postponed the release of its results by over a month as it grapples with accounting issues that led to profit forecasts being overstated by tens of millions of pounds.
Originally scheduled to publish its preliminary results on 12 November, the global travel retailer has now deferred this to 16 December, while audit firm Deloitte probes into flaws in its accounting systemsas reported by .
"The revised date will provide the company time to respond to the Deloitte review and allow the group's auditors, PricewaterhouseCoopers LLP, to complete the required audit procedures," the company said.
In August, WH Smith shares took a hit after the company admitted to an overstatement of £30m in its projected profit for its North America division.
The FTSE 250 company attributed the error to "the accelerated recognition of supplier income in the North America division."
As a result, it slashed its anticipated trading profit in North America from £55m to £25m.
Since the beginning of the year, the company's stock has dropped by more than two-fifths, pushing it below a £1bn market value for the first time in years.
On Wednesday morning, WH Smith shares dipped 1.1 per cent to 702p.
This accounting issue arises during a period of significant change for WH Smith as the stationer aims to evolve into a travel-centric operation.
Earlier this year, the firm finalised an agreement to sell its high street shops to private equity company Modella in a £40m transaction.
This will result in the disappearance of the chain from Britain's high streets, where it has been a fixture for over a century, as Modellais rebranding the stores under the 'TG Jones' name.
In July, WH Smith also divested its greetings card venture, Funky Pigeon, to Card Factor in a deal worth £24m.
These transformations will see the company revert to its origins as a travel retailer from the 19th century, when it began with outlets and kiosks selling books and newspapers within train stations.
