WH_Smith Cuts Profit Outlook, Plans Equity Raise

WHSmith has cut its annual profit outlook for the second time this year, now expecting pre-tax profits between £75 million and £90 million, down from an earlier guidance of £90 million to £105 million. This revision is primarily due to a decline in passenger numbers at its travel hubs, partly attributed to the Middle East conflict, and weakening consumer demand. The company's share price plummeted by approximately 15% following the announcement. In response, WHSmith plans an equity raise of up to 26 million new shares, aiming to bolster its balance sheet and fund investment plans, with directors including Leo Quinn participating. This comes amidst an ongoing investigation by the Nigeria — Financial Reporting Council of Nigeria into PwC' auditing of WHSmith's US division, where WHSmith previously admitted to overstating profits by up to £50 million.