WH Smith CEO resigns after probe into US accounts

(Sharecast News) - WH Smith chief Carl Cowling resigned on Wednesday after an independent probe found faults with the accounting treatment of its US business. A review by Deloitte said treatment of supplier payments "was not consistent with the requirements of the relevant accounting standards".

The retailer also cut headline trading profit guidance for North America to a range of £5m - £15m, down from the revised expectation of around £25m announced in August and previous market expectations of £55m.

WH Smith, which now operates as a travel outlet retailer in August slashed guidance for its North American operations, citing problems with the way it had recognised payments from suppliers when they ran promotions or discounts to help boost sales.

"Whilst the issues identified in the Deloitte review arose in our North American division, I recognise the seriousness of this situation and as group CEO feel it is only right that I step down from my position," Cowling said in a statement.

Reporting by Frank Prenesti for Sharecast.com