Quindell share price rises on report of loss and dropping sales after rocky period

Clara Guibourg
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Quindell, facing quite a few troubles, has reported a half-year loss (Source: Getty)

The figures

The troubled insurance claims processor has reported a pre-tax loss of £35.4m for the first half of 2015. Revenue has dropped to £35m, down from £43m.

These figures come just weeks after the company released full-year accounts restating past earnings.

Quindell shares were up after the results, trading 2.15 per cent up in morning trading.

Why it’s interesting

Quindell is under investigation by the Serious Fraud Office for its accounting practices, which the company has admitted were “at the aggressive end of acceptable”.

Legal claims were brought against the company yesterday, with "a group" seeking damages of £9m. The group is thought to be Quindell shareholders, seeking compensation for the company restating its financial accounts.

In June, Quindell requested suspension from Aim over an FCA investigation, and trading in the company’s shares did not resume until August, when they fell by nearly 40 per cent.

What Quindell said

Richard Rose, Quindell’s chairman, said:

The focus now is on the future. The appointment of Indro Mukerjee on 7 September 2015 as group chief executive 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.

Mukerjee himself added:

I plan to share an outline strategy around the turn of the year. In the meantime, I will be focusing on: establishing good governance and operational integrity; dealing with the group's losses as quickly as possible; and creating the best platform possible for future growth based on clear and compelling value propositions.

In short

Quindell has reported a half-year loss after a rocky period which has seen the company’s accounting practices investigated by the Serious Fraud Office.

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