Business reporter, BBC News
Getty ImagesWH Smith shares slumped 42% on Thursday following an accounting error which led it to overstate its North America profits.
The company has cut its profit forecasts in the region as a result and has ordered a review by auditors.
It said the mistake was because of an issue in how it calculated the amount of supplier income it received essentially causing it to be logged too early.
Analysts said the blunder was a “huge embarrassment” for WH Smith, which is looking for a fresh start after selling its UK High Street division earlier this year.
The group is now expecting a trading profit for North America of about £25m for the year to August – a cut from the £55m initially forecast.
As a result, the company lowered its outlook for annual pre-tax profits to around £110m.
It has asked accountancy firm Deloitte to conduct a review into the…
