WH Smith found £30M in accounting errors — the FCA found the rest

In November 2025, WH Smith revealed that it had uncovered accounting errors in its North America business, initially reported as a £30 million misstatement of profits. The company commissioned an independent review by Deloitte and began restating its financial results. The UK Financial Conduct Authority (FCA) opened a formal investigation into potential breaches of the UK Listing Principles and Disclosure and Transparency Rules.

The market reacted swiftly: WH Smith's shares fell 12% on the announcement, wiping approximately £600 million off the company's market capitalisation. The accounting errors involved revenue recognition issues under IFRS 15, and the company was forced to delay the appointment of a new CFO. It also sought to recover up to £7 million in bonuses from former senior executives who had overseen the period when the errors occurred.

The FCA confirmed its investigation on December 19, 2025. The case was the latest in a series of UK retail accounting failures that raised questions about the effectiveness of internal controls at established high-street names. WH Smith, founded in 1792 and one of the UK's best-known retail brands, saw its reputation for financial stewardship damaged by the revelation.