WH Smith
SMWH · Main Market · Retail · mcap £612m · 419.2p 5 open situations →
Open · 5
Pure-play travel portfolio reset
Led to Non-pre-emptive share placing – Completed; net proceeds £103m, closed 16 Sep 2026
After selling its High Street business and funkypigeon.com, the Group is pure-play travel retail and has been closing North America fashion and non-core Rest of World stores. The 16 September 2026 update adds the Norway exit, agreed exits from Denmark and Sweden in early 2027, the Netherlands exit on lease expiry in 2027, and the Cult Pens sale in early September 2026. North America Resorts revenue fell 26% in Q4.
- Next milestone
- Preliminary results on 12 November 2026 16 Sep 2026 ↗
- Las Vegas
- Strategic options being considered for Welcome to Las Vegas business 10 Jun 2026 ↗
- InMotion
- Store portfolio review ongoing; LFL down 5% in last 7 weeks 10 Jun 2026 ↗
- ROW
- 5 uneconomic Norway stores closed; landlord talks to exit or move stores to franchise 10 Jun 2026 ↗
- Impairment
- Up to £150m non-cash charge linked to InMotion review, store exits and ROW restructuring 10 Jun 2026 ↗
- Cult Pens
- Sale completed in early September 2026 16 Sep 2026 ↗
Next: Update on key priorities at preliminary results · 12 Nov 2026
- 16 Sep 2026 Exits continuing; Cult Pens sold
- 10 Jun 2026 Store exits continuing; reviews ongoing
- 23 Apr 2026 Under way: Heathrow flagships open, exits continuing
- 5 Mar 2026 Under way: first stores closed
FY26 guidance cut and dividend suspension
Led to Non-pre-emptive share placing – Completed; net proceeds £103m, closed 16 Sep 2026
On 23 April 2026 the Group cut FY26 PBT guidance and suspended the dividend. It cut again on 10 June 2026 to £75m-£90m. On 16 September 2026 it said FY26 PBT would be c.£75m, the bottom of that range, on lower margins from promotions, less brand marketing and inflation, offset by central cost cuts and lower interest. Net debt is expected at c.£325m, against c.£420m guided on 10 June.
- Margins
- UK c.13-14% (from c.14-15%), NA c.7% (from c.7-8%), ROW c.4% (from c.5%) 23 Apr 2026 ↗
- North America
- FY26 revenue growth 4%-6%; headline trading margin c.5% (previously c.7%) 10 Jun 2026 ↗
- Other divisions
- All other divisional trading assumptions unchanged 10 Jun 2026 ↗
- Impairment
- Non-underlying non-cash charge of up to £150m for goodwill and store impairments 10 Jun 2026 ↗
- Assumptions
- No near-term improvement in consumer confidence; jet fuel supplies maintained; profit weighted to final quarter 10 Jun 2026 ↗
- FY26 PBT
- c.£75m (16 Sep 2026), down from £90m-£105m before 10 June 16 Sep 2026 ↗
Next: Preliminary results and priorities for the year ahead · 12 Nov 2026
- 16 Sep 2026 FY26 PBT confirmed at c.£75m
- 10 Jun 2026 Guidance cut a second time to £75m-£90m
- 23 Apr 2026 Guidance lowered; dividend suspended
4 directors buying
- 10 Aug 2026 Helen Rose £50k
- 29 Jun 2026 Simon Emeny £79k
- 27 Apr 2026 Leo Quinn £99k
- 29 Jan 2026 Max Izzard £169k
Group CEO succession
Follows from Prior-year accounting restatement – Ongoing; company cooperating
CEO Carl Cowling resigned on 19 November 2025 after the Deloitte review. On 19 January 2026 the Board named Leo Quinn Executive Chairman. He joined as Executive Chair on 7 April 2026, and his first step was to suspend the dividend and focus on cash, cost and debt reduction.
- Timetable
- Not stated
- Appointee
- Leo Quinn, ex-Balfour Beatty CEO, joined as Executive Chair on 7 April 2026 23 Apr 2026 ↗
- Chair exit
- Annette Court steps down at the AGM on 2 February 2026; Simon Emeny interim non-executive Chairman
- Pay
- Salary £360,000, 3% pension allowance; no bonus or LTI
- Share Award
- 1,887,519 shares worth £12.25m on grant; five-year share price test; buys £2m of shares himself
- Approval
- Shareholder General Meeting to approve appointment and award, date not stated
Next: Permanent Group CEO and NED appointments (timetable not stated)
- 23 Apr 2026 Leo Quinn in post as Executive Chair
- 19 Jan 2026 Executive Chairman named; interim CEO continues
- 19 Dec 2025 Interim CEO in place; search continuing
- 19 Nov 2025 CEO resigned; Board search begun
Prior-year accounting restatement
Led to Group CEO succession – Leo Quinn in post as Executive Chair
The FCA opened an investigation into compliance with the Listing Principles and Rules and the Disclosure and Transparency Rules over the North America accounting matters announced on 19 November 2025. The 23 April 2026 interims say the Group continues to cooperate; no outcome, amount or decision date is stated.
- Root cause
- Target-driven culture, decentralised structure and limited Group oversight of North America finance
- Remediation
- Stronger governance and controls; aligned processes and new systems; cultural change, training and monitoring
- Malus and clawback
- Applied to overpaid bonuses of former executive directors for FY23 and FY24
- Forum
- Financial Conduct Authority 23 Apr 2026 ↗
- Scope
- Listing Principles and Rules and Disclosure and Transparency Rules compliance 23 Apr 2026 ↗
- Trigger
- Matters announced on 19 November 2025
- 23 Apr 2026 Remediation progressing well
- 19 Dec 2025 Remediation plan in place, progressing at pace
- 19 Nov 2025 Review delivered; remediation plan being implemented
- 19 Nov 2025 Review delivered; remediation plan being developed and implemented
Closed · 3
Company filings. Not investment advice.