Update – North America: Revised guidance
North America trading profit cut by £30m to £25m due to accelerated supplier income recognition.
vs expectations: below
- North America Headline trading profit (FY25) approximately £25m (prior approximately £55m)
- Group Headline profit before tax and non-underlying items (FY25) in the region of £110m
Select text to share a quote on X · sign in to keep highlights & notes in your SMWH notes
Revised guidance
In preparation for the Group's year end results for the financial year ending 31 August 2025, a current financial review has identified an overstatement of around £30m of expected Headline trading profit1 in North America. This overstatement is largely due to the accelerated recognition of supplier income2 in the North America division.
WHSmith now expects Headline trading profit1 from the North America division for the financial year ending 31 August 2025 to be approximately £25m, down from previous market expectations of approximately £55m.
As a result, the Group expects full year Headline profit before tax and non-underlying items1 to be in the region of £110m.
The Board has instructed Deloitte to undertake an independent and comprehensive review.
The Group will provide a further update at its preliminary results announcement.
1 Pre-IFRS 16 basis
2 The Group receives supplier income in the form of supplier incentives and discounts. These incomes are recognised as a deduction from cost of sales on an accrual basis as they are earned for each supplier contract.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.