WH Smith Plunges After Accounting Error Hits Profit Outlook (3)

WH Smith Plc slumped the most on record after the discovery of an accounting error forced it to slash its profit outlook in North America, a major setback in a key growth market for the British retailer.

The shares plunged 42% in London trading, cutting the company’s market value to about £830 million ($1.1 billion).

A financial review found an overstatement of about £30 million in expected headline trading profit for North America in the year ending Aug. 31, WH Smith said Thursday. The error came after it booked income from suppliers earlier than it should have. The board appointed ...