Dec 12 (Reuters) - Britain's WH Smith delayed the publication of its preliminary annual results for the second time on Friday, as the travel retailer struggles with the fallout of some accounting
WH Smith Postpones Results Again Over Audit Review Concerns
Dec 12 (Reuters) - Britain's WH Smith delayed the publication of its preliminary annual results for the second time on Friday, as the travel retailer struggles with the fallout of accounting failures at its U.S. operations.
Having already postponed once in October, the company had been due to release results for the year ended August 31 on December 16. It will now push the release date back an additional three days to December 19.
WH Smith said the revised date will provide its auditor, PricewaterhouseCoopers LLP, "further time to complete the required audit procedures".
Shares of the company fell 2.4% to 651.5 pence in early trading before recovering somewhat to trade down around 1% by 0950 GMT.
WH Smith's shares have dropped around 44% so far this year, recording their worst one-day fall in August when it first disclosed the accounting error.
An independent review of WH Smith's books revealed that earnings from its North America business, its second-largest division, had been overstated. That has since prompted a profit cut and the resignation of its CEO.
WH Smith is also looking at the leadership team of its North America business after the review revealed weaknesses in the finance team's composition and inadequate systems, controls, and review procedures.
The probe does not cover the new CEO of the regional team, who was appointed less than five months ago, the company said.
The Financial Times had reported in November that the UK financial regulator had made enquiries at the company regarding the probe, while the country's accounting regulator was also weighing a formal investigation into PwC over its role in WH Smith's audit.
PwC declined to comment.
(Reporting by Yamini Kalia in Bengaluru; Editing by Eileen Soreng and Joe Bavier)
