“A MORE conservative approach” will be taken to the accounting at insurance claims processor Quindell, as it takes another step towards a major overhaul of its governance, operations and strategy.
PwC began a review of its accounting in December, with Quindell announcing in March that it had found “aggressive” but “largely acceptable” practices. However, some inappropriate policies around its induced hearing loss claims revenue and balances were found.
In its latest update to the stock exchange, Quindell said it would provide a definitive view of historical results with a more conservative approach. The changes will see profits and revenue reduced. It is talking to its auditor, KPMG, about this process and will reveal the new numbers alongside its audited 2014 results.
A series of board appointments have been made, including former Conservative leader Lord Howard as senior non-executive. David Young, former FD and chief executive of Bradstock Group, will chair its audit committee.
New finance director Mark Williams, appointed to replace Laurence Moorse, has now started in the role.
It has also completed the sale of its professional services division to Slater and Gordon for £637m – with the majority of the proceeds to be returned to shareholders, before the end of November. Chief executive Robert Fielding has transferred to Slater and Gordon in the deal.
New chairman Richard Rose said: “This announcement represents a significant milestone in the transformation of Quindell. We are pleased to be able to put in place a board with the skills necessary to guide Quindell as it begins life as a very different company.”
David Currie, outgoing interim chairman said: “I’d like to take this opportunity to thank the entire team both within the professional services division and the rest of the group, ably led by Robert Fielding, for reaching this outcome. This is a watershed moment for the company and we wish Robert and all our colleagues moving to Slater and Gordon well as they begin their careers with their new employer. At Quindell, we look to the future with great confidence and excitement.”