Published by Global Banking and Finance Review
Posted on December 19, 2025
Dec 19 (Reuters) - Britain's WH Smith forecast profit next year to stay almost at the same levels as 2025 on Friday, as it reviews some of its North American businesses after accounting failures at its U.S. operations exposed gaps in its financial controls.
The travel retailer had a turbulent year marked by two profit forecast cuts and the abrupt exit of its chief executive after an independent review found earnings at its North America business, its second-largest division, had been overstated.
"The Board and I are acutely aware that we have much to do to rebuild confidence in WHSmith and deliver stronger returns as we move forward," Interim CEO Andrew Harrison said, as the company plans to recover bonuses from its former senior executives following the profit restatements.
WH Smith is reviewing its InMotion business, which sells electronic and digital accessories primarily in airports, and is exiting some unprofitable fashion and speciality stores of its Resorts business.
The company expects headline group pre-tax profit of 100 million pounds to 115 million pounds ($133.75 million to $153.81 million) for fiscal 2026.
The headline pre-tax profit for the year ended August 31 came to 108 million pounds, slightly behind analysts' estimates of 110 million pounds, according to a company-compiled poll.
($1 = 0.7477 pounds)
(Reporting by Raechel Thankam Job and Yamini Kalia in Bengaluru; Editing by Rashmi Aich)
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