In a recent market filing, UK-based travel retailer WH Smith PLC revealed that the UK’s Financial Conduct Authority had launched an investigation into possible breaches of certain accounting rules by the company’s North America division. According to WH Smith, the FCA commenced an investigation after an Internal Audit review revealed that the company’s North America division had overstated its supplier income – a misstep that reportedly caused the Board to overpay bonuses to former executive directors based on a restatement of profits for financial years ending in August 31, 2023 and August 31, 2024. In addition to clawing back the overpaid bonuses, WH Smith indicated that it had put in place a clear remediation plan that included enhancements to governance, compliance controls, and mandatory training and monitoring programs. WH Smith also reported that it was committed to cooperating fully with the investigation.
On December 19, 2025, the FCA confirmed that it had launched an investigation into WH Smith and its possible breach of UK Listing Principles and Rules and Disclosure and Transparency Rules. According to the FCA, the investigation relates to WH Smith’s announcement on November 19, 2025, when the company disclosed the findings of an independent and comprehensive review of FY23 to FY25 that identified the North America accounting issues. In its November 2025 market filing, WH Smith also disclosed several remediation actions that were taken in response to the findings, including the appointment of a new CEO for the North America division and the company’s ongoing review of the North American leadership team.
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