WH Smith names ex-Balfour Beatty chief as chair, shares soar

By Yamini Kalia

Jan 19 (Reuters) - Travel retailer WH Smith SMWH.L named ex-Balfour Beatty chief Leo Quinn as executive chair on Monday, replacing Annette Court in a leadership shakeup aimed at reviving the business and restoring investor confidence.

Its shares rose more than 11% by 0825 GMT. They have fallen about 42% in the past 12 months.

Quinn joins WH Smith as the retailer grapples with the fallout from accounting errors in its North America business that sent shares tumbling, delayed annual results, prompted an audit probe and the exit of its then-CEO.

"The Board strongly believes that Leo's record of leadership and significant experience of successfully delivering transformation for large international companies make him the right candidate to deliver the Group's return to stability and long-term growth strategy," outgoing Chair Court said in a statement.

In his over a decade-long tenure at Balfour, Quinn strengthened the company's finances, moving it from heavy indebtedness to a net cash position by 2024, with the stock soaring 190%.

NORTH AMERICA FOCUS

Quinn also brings seven years of U.S. experience — valuable for WH Smith as it focuses on hiring executives familiar with its key market of North America.

The company's biggest shareholder Causeway Capital supported Quinn's appointment, saying he was the right executive to lead the travel retailer.

"WH Smith urgently needs a leader who is disciplined on capital spending and focused on rebuilding North American margins," said Jonathan Eng, a portfolio manager at Causeway.

Quinn is slated to receive a potential 24.5 million pound ($32.8 million) share award, if he doubles the company's value over five years, in addition to his 360,000-pound base salary.

Court will step down after the company's annual general meeting on February 2, with senior independent director Simon Emeny serving as interim chair until Quinn joins in April.

($1 = 0.7465 pounds)