The retail group which only recently disposed of its UK high street store network issued a market update this morning, warning that profit forecasts for the year to 31st August in its North American division had been significantly overstated. The issue is being apportioned to the accelerated recognition of supplier income, which relate to incentive and discount payments on goods. The upshot is that North American profits will drop from £55m to £25m, whilst globally the figure will be around £110m. The WH Smiths share price was 29% lower in early trade.
Recruiter Hays is seeing no let-up in the sector’s woes with the publication of full year results this morning. Looking on the bright side, the company is conserving cash well, but the dividend has been axed, efficiency programs are continuing and the sluggish performance seen in FY25 is being sustained in the early part of FY26. Pre-tax profits fell by 65%, a figure that was even more dramatic once exceptional items were accounted for, and the trading outlook remains uncertain. Consultant headcount is now down by a third over the peak figure two years ago and the Hays share price was off by more than 6% shortly after the open.
A trading update from the technical manufacturer Renishaw was issued this morning, advising that the CFO would be standing down at the end of the year after a long tenure at the company and that profit guidance for the full year was being tightened, now expected to land at the upper end of previously stated guidance. Market reaction to the news has been positive with the Renishaw share price adding 7% by 8.30am.
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Update – North America: Revised guidance - - WH Smith (SMWH)
