Watchstone share price little changed as ex-Quindell sees losses shrink
Shares in Watchstone Group (LON:WTG) have been flat in London this morning as the insurance technology company previously known as Quindell reported that its losses had narrowed in the first half of the year. The group, however, remains under investigation by the Serious Fraud Office (SFO) which is looking into its accounting practices.
As of 10:11 BST, Watchstone’s share price stood at 222.00p, flat in percentage terms. The group’s shares have lost more than 77 percent of their value over the past year, and are down by a little over a quarter in the year-to-date.
Watchstone Group announced in a statement today that its underlying EBITDA loss before capitalisation of development expenditure had fallen to £6.9 million in the six months ended June 30, from £13.8 million in the prior-year period. The group’s total loss before tax meanwhile came in at £8.2 million, as compared with £32.3 million a year ago.
“In the first half of the year Watchstone has made solid progress in line with our strategy and expectations,” the group’s new chief executive Indro Mukerjee said in the statement. “We have enjoyed a period of stability and operational execution which, given the history of the Company, has been essential.”
Watchstone, previous known as Quindell, is trying to shed its turbulent past, marked by a campaign against the business by short sellers, an SFO investigation into its accounting practices, as well as a shareholder lawsuit following the company’s profit restatements. The group noted that it was cooperating with the SFO investigation, which remains ongoing.
The one analyst offering a 12-month price target for the Financial Times expects Watchstone’s share price to rise to 315.00p in the next year. As of September 9, the investment analyst covering the stock advises investors to purchase equity in the company.
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