Embattled insurance outsourcer Quindell’s shares dropped 6 per cent today after it warned investors that the ongoing MOT of the business will take longer than expected.
Quindell, which handles outsourced insurance claims, ended 2014 in disarray after a series of scandals culminating in a controversial share dealing arrangement that forced out founder and chief executive Rob Terry.
City veterans Richard Rose and Jim Sutcliffe were drafted in last month to help turn things around, joining the board and undertaking a strategy review. PwC has also been reviewing Quindell’s books.
Both reports were due at the end of February but Quindell said today it was taking longer than forecast due to "the high level of corporate activity". Quindell is currently in negotiations to sell part or all of its legal division to Australian law firm Slater & Gordon. Quindell said these negotiations were ongoing, with Sutcliffe and Rose backing the deal.
The company also hinted at the prospect of selling off other parts of the business. Quindell said preliminary recommendations include streamlining the business to just two divisions with "several businesses and assets" that could be disposed of.
Quindell said the results of both reviews are now due "in the next few weeks".Reuse content