WH Smith’s chief executive has stepped down with immediate effect after a review found accounting failures in its North American division, prompting the travel shop chain to slash its profit outlook.

Nearly £600m was wiped off the retailer’s market value in a 42% one-day share price fall when the blunder emerged in August. It came shortly after the sale of its high street business , which has since been rebranded as TGJones by its new owners.

WH Smith shares climbed by more than 7% on Wednesday after Carl Cowling’s departure was announced, although they are still trading substantially below the levels seen before the August sell-off.

Cowling, who had been group chief executive for six years, will be replaced on an interim basis by the company’s UK chief executive, Andrew Harrison,

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