LONDON (Alliance News) - IT services management company Watchstone Group PLC on Thursday reported a widened loss for 2018 on lower revenue and continued challenges in its insurance brokerage business ingenie.
For the year, Watchstone Group reported a widened pretax loss of GBP20.5 million from GBP5.0 million the year before, on revenue that dropped to GBP38.0 million from GBP44.9 million,s the group continued to simplify its operations.
Administrative expenses, including impairment charges rose to GBP37.4 million from GBP27.7 million the prior year.
Watchstone's ingenie business has continued to struggle in 2018 following the second half of 2017, as the young driver market was affected by instability in motor policy pricing. Revenue in the business fell to GBP7.8 million from GBP14.4 million.
Although the group has rationalised the segment with a revised structure and business model, visible positive results are still due to show later in 2019.
Watchstone's Healthcare business however gave a steady performance in 2018, with revenue increased in 2% in the year.
The group said it would not be able to distribute capital to shareholders until tit has resolved the Slater & Gordon litigation, with the trial due to start to October 2019.
Watchstone has continued to face legal claims made by Australian law firm Slater & Gordon alleging "deceit and the associated breach of warranty" related to its purchase of a Quindell business. Watchstone - known as Quindell until November 2015 - reiterated that it continues to see the claims as "wholly without merit".
Looking ahead, underlying revenue for the first quarter of 2019 was down from the year before due to lower contributions from ingenie.
Shares in Watchstone Group were down 7.4% at 83.16 pence on Thursday.