Scandal-stricken Quindell has revealed falling revenues and a significant loss as the inquiry into its past accounting practices continues.
The insurance technology company, which is under investigation by the Serious Fraud Office for accounting inaccuracies under controversial former boss Rob Terry, made a first-half loss of £35.5m on revenues of £35.3m, down from £42.8m the year before. This comes just seven weeks after the heavily delayed publication of its annual accounts, which revealed the magnitude of its accounting issues.
Quindell made a £238m loss in 2014 after writing down the value of its assets – including acquisitions made by Mr Terry – by £157m.
The company also restated its accounts for 2013 to post a pre-tax loss of £8.6m, compared with a previously reported profit of £107m, on revenues of £61m, which were downgraded from the previous £380.1m.
Indro Mukerjee, the new chief executive who joined the company last month, said he would unveil his plans for the company “around the turn of the year” as he looks to repair Quindell’s damaged reputation. Its chairman, Richard Rose, said: “The new board is now complete and will deliver the highest standards of corporate governance with a focus on shareholder value.”
The company repeated that it intends to return up to £500m to shareholders by the end of this year.
However, a lawsuit of up to £18m from investors nursing heavy losses is expected in the coming months. As many as 300 investors have joined the legal action, directed by Your Legal Firm, while a similar number of investors have contacted Your Legal Friend about doing the same.
Shares in Quindell, whose stock market value has crumbled from £2.7bn at its peak last year to £450m, rose 4.25p to 101.5p.
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