WH Smith hunts for new chair amid accounting error fallout

WH Smith is reportedly searching for a potential successor to chair Annette Court as the retailer seeks to restore investor confidence after an accounting error, according to Sky News.The group is said to be working with headhunters on the recruitment of two new non-executive directors, a process expected to lead to a candidate capable of taking over as chair within around 18 months.

As part of the search, Sky said the company wants to appoint a new board member with experience of the North American travel retail market, a region seen as strategically important to its future growth.

One source familiar with the appointment process told Sky the search was being advised by Russell Reynolds Associates. They said Court, who has chaired WH Smith for three years, was not expected to step down during 2026 but could do so in 2027.

Another source said Court had been closely involved in tackling the group’s recent problems and that the board’s focus was on orderly succession planning rather than an active effort to replace her.

WH Smith is expected to face questions from shareholders about the accounting issues at its annual meeting early next month.

Last month, WH Smith reported that pre-tax profits fell from £114m to £108m in its full-year results, as it confirmed an investigation by the Financial Conduct Authority (FCA ) was launched regarding the previous accounting error. 

WH Smith also said a remediation plan was under way following the findings of a Deloitte review announced in November, adding that the FCA had begun an investigation into the company. It did not provide further detail on the scope of the probe.

WH Smith previously postponed its full-year results following an accounting error that saw its US profits be overstated by around £30m. Last year, WH Smith said it cut its profit forecast for its North American business after uncovering the accounting overstatement.

The retailer said the error was largely linked to the accelerated recognition of supplier income in the division. 

At the time, Andrew Harrison, interim group chief executive, said: “It has been a difficult end to the year for the group. The board and I are acutely aware that we have much to do to rebuild confidence in WHSmith and deliver stronger returns as we move forward.”

The company’s chief executive Carl Cowling also stepped down when the scale of the accounting problems became clear, with Harrison appointed as interim CEO. 

WH Smith has been approached for comment.