LONDON (Alliance News) - Insurance technology company Quindell PLC Wednesday reiterated plans to make a capital distribution of up to GBP500 million, subject to court approval, as it reported a slightly narrowed pretax loss for the first half of 2015 to the end of June.
Quindell's interim results are its first under new Chief Executive Indro Mukerjee following an accounting scandal, which ultimately led to the company's accounts for 2014 being delayed, meaning that the 2015 interim results come just seven weeks since the 2014 results were published.
Quindell had been under investigation by the UK's Financial Conduct Authority, the City regulator, over its accounts for 2013 and 2014, while the Serious Fraud Office opened an investigation into its past business and accounting practices. In light of the SFO's investigation, the FCA in August opted to discontinue its own investigation. Quindell said it was continuing to co-operate fully with the SFO investigation, which is now the only ongoing investigation to which it is subject.
Tuesday the company said it had received a notice of a GBP9.0 million legal claim, against which it said it would vigorously defend itself. It said an additional GBP9.0 million in claims may come forward as well.
Quindell reported a pretax loss of GBP35.5 million for the half year to end-June, narrowed slightly from a restated pretax loss of GBP35.7 million a year before, as revenue fell to GBP35.3 million from GBP42.8 million, although this was offset by lower impairments and other exceptional costs.
Quindell's results for the previous year have been restated as a result of the review into the company's accounts.
The first half results comprise of the continuing operations of its remaining businesses as at end-June and the discontinued operations related to its Professional Services Division, which it sold during the half year.
The company attributed the decline in revenue to a drop at Himex, where there was a temporary disruption in supply within one of its US customers, and a slowdown in new software sales by its QETS business due to concerns over the Quindell brand. It also saw a slowdown in activity in its property services business, as government policy and subsidy changes significantly hit its energy-efficiency related installations.
Quindell said trading since the end of the half year has been broadly in line with its first half due to "ongoing reputational issues", but said it is focused on ensuring that the issues of its past have been "properly identified, reported appropriately and resolved."
"The appointment of Indro Mukerjee on 7 September 2015 as group CEO was an important step. The new board is now complete and will deliver the highest standards of corporate governance with a focus on shareholder value," said Non-Executive Chairman Richard Rose in a statement.
Shares in Quindell were up 1.3% at 98.50 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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