Three key news stories unfolding as the UK stock market opens. Check out our companies reporting diary for upcoming results from FTSE 350 and selected international stocks.
1. Accounting error sees significant profit downgrade at WH Smith
WH Smiths LON:SMWH issued updated guidance for its North American business this morning, advising that a review had uncovered an overstatement of around £30m in headline trading profit. That’s for the year to 31st August, so the regional figure will now only be around £25m, whilst group wide profits will be c. £110m. The error is being explained as accelerated recognition of supplier income, but even if this is a deferral, investors might not be tempted to treat the news too kindly.
- UK Stock Market News: Next, GSK, WH Smith
- WHSmith: Are the shares good value after accounting own goal?
2. Hays sees sector challenges persist, cash balance stable
Recruiter Hays LON:HAS issued full year numbers this morning with these highlighting the ongoing challenged faced by the sector. On a like for like basis, fees were down 11% and operating profits fell 56%. The dividend has understandably been pared back by almost 60% and current trading in the early part of FY26 is showing no major change. Cost reduction initiatives continue to be pursued and the fact that the cash reserves are stable may offer some solace.
3. Robinson interims show strong profit growth and good momentum
Custom packaging company Robinson LON:RBN also had interims out today with revenues up 2%, a modest improvement in margins and a significant uptick in pre-tax profits, which have risen to £1.8m from £0.7m in the comparative. The momentum here is clearly good but management acknowledge market challenges. Full year guidance remains on track and the medium term outlook is for above-market growth.
