Exceptional turbulence surrounds delayed results
WH Smith PLC enters what should have been a routine full-year reporting season in an exceptionally turbulent context. The company’s results for the year ended 31 August 2025 – originally scheduled for publication in mid-November – have been delayed twice, most recently to the 19th December 2025 to give auditor PwC additional time to complete audit procedures amid the ongoing fallout from accounting irregularities.
This follows an independent review that found profits in the North America division were overstated due to premature recognition of supplier income, a revelation that triggered a major profit warning and the resignation of former chief executive Carl Cowling from the business.
WH Smith is expected to see a significant fall in its revenue, pre-tax profit and earnings per share (EPS):
Full-year 2025 revenue: £1.61 billion, representing a 16% year-over-year (YoY) decrease
Pre-tax profit: £109 million, down 32% YoY
EPS: 59.57p, down 31% from 86.3p last year
Share price reflects governance concerns
The renewed delay has weighed on the stock, which has fallen sharply – by 44% – this year, reflecting both investor unease over financial controls and broader questions about strategy.
The delayed results will be one of the most closely watched outcomes in the UK travel-retail sector, as WH Smith transitions from its historic identity as a high-street books and newsstand retailer into a pure travel-retail specialist following strategic portfolio changes.
Earlier in 2025, the group completed the sale of its UK high-street business to Modella Capital for approximately £40 million.
Strategic pivot to travel retail
The sale of WH Smith’s UK high-street portfolio was a decisive strategic pivot aimed at concentrating on airport, railway station, hospital and motorway service station outlets, the parts of the business that generate the majority of revenue and profits with superior economics.
Investors will be looking for clarity on several fronts when the results are finally published on 19 December.
Key among these is the full-year performance of the travel retail business outside North America, where preliminary trading updates showed broad revenue growth.
Pre-announcement trading showed strength
For the 13-week period to 31 May 2025, WH Smith reported total travel revenue up 7% on a constant-currency basis with growth in the UK, North America and Rest of World markets, and like-for-like lifts across airport, rail and hospitals channels.
The group said it was well positioned for the peak summer trading period, bolstering confidence that the travel focus could deliver resilient results.
Profit restatement materially affects outlook
A central question for the full-year figures is how the impact of the North America overstatement alters the shape of the group’s profitability.
Prior to the accounting issue coming to light, WH Smith had expected headline trading profit from its North American division of around £55 million for the year.
That figure was later revised down to approximately £25 million after the correction, and market forecasts for full-year profit before tax were cut to around £109 million.
This compares with previous guidance that had been more optimistic, underlining how materially the adjustments have changed expectations.
Governance remediation requires reassurance
Beyond headline profit, the audit delay itself is likely to be addressed in the results narrative. Auditors taking longer to complete procedures can signal deeper control issues.
WH Smith’s management – now led on an interim basis by Andrew Harrison – will need to reassure shareholders about financial governance strength.
Given that regulators including the UK Financial Conduct Authority have engaged with the firm, commentary on governance progress may be as important as numbers.
Operational performance and travel retail dynamics will also receive significant focus across different geographical markets.
WH Smith analyst rating and technical analysis
Fundamental analysts rate WH Smith as a ‘hold’ and have a long-term mean price target at 775.50 pence, around 17% above the current share price (as of 18/12/2025).