Independent review of Quindell accounts drags on as outsourcer looks to split into two divisions

Quindell has announced that the review being carried out into its accounting policies has been delayed indefinitely.

The claims outsourcer, whose accounts are being scrutinised by PwC, has also said that it is looking to split the company into two distinct divisions covering professional services and technology.

The news has led to speculation that Quindell is preparing a way to brace shareholders for more bad news and resulted in a drop in its share price.

Quindell said that the board was considering the creation of the two new divisions after considering the assessments presented to it by PwC and two of its consultants, Richard Rose and Jim Sutcliffe, the company’s prospective chairman and executive deputy chairman.

“The Independent Review is ongoing and has taken longer than originally anticipated given

the high level of corporate activity of the Group,” said Quindell in a note to shareholders.

“Advice in relation to the Company’s main accounting policies (in particular revenue recognition in the Professional Services Division) is being further considered and no conclusions have been reached. The Board now expects that the Independent Review will be completed in the next few weeks and shareholders will be updated as appropriate as to its findings.”

It added that its decision to pursue a twin division business model would lead to Quindell having several businesses and assets that were “non-core”.

“The Board will take appropriate action to deliver shareholder value from those assets,” it said.

The company also confirmed that discussions were still ongoing with Slater & Gordon.

Mark Dugdale