Quindell share price: Delayed results reveal full-year loss of £238m

on Aug 5, 2015

Troubled insurance claims processor Quindell Plc (LON:QPP) has finally published its delayed annual results, revealing a full-year loss of £238 million for 2014. The company, which is currently under investigation by the Financial Conduct Authority (FCA) in relation to historical financial statements, said that it had requested that its shares be restored to trading on the London Stock Exchange’s junior market tomorrow. Quindell’s share price last stood at 124.75p when the company’s stock was suspended on June 29. The shares have lost nearly 40 percent of their value over the past year.

Quindell today released its delayed annual report for 2014, revealing that it had made pre-tax loss of £238 million. Total revenue came in at £72 million, up from £61 million in 2013, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing businesses were a loss of £33.3 million, as compared with a £7.4-million profit in 2013.
The company took impairment charges of £157 million last year, as its management wrote down the value of some assets, including companies acquired during the year under Rob Terry, who built the company up from a golf resort to a multi-million pound services group. In April last year, however, the company was targeted by short-sellers that made a series of allegations about the group’s business model.

Earlier this year, Quindell revealed the results of a PricewaterhouseCoopers’ review which found that some of the company’s historical accounting policies had been “at the aggressive end of acceptable practice,” while the FCA launched a probe into statements in relation to the company’s financial accounts during 2013 and 2014.
Quindell’s non-executive chair Richard Rose commented in today’s statement that the company “will, of course, co-operate fully” with the City watchdog and that it intended to set up internal structures to separate the investigation from its operating businesses. The company expects its revenue to remain broadly flat this year.

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