Watchstone swings to loss as Quindell legal costs mount up

INSURANCE group Watchstone is still struggling to distance itself from its past as it increases its provisions for Quindell-era legal costs to £4.3m.

Watchstone, formerly known as Quindell, said yesterday that it had swung to a loss of £3.5m for the six months to June, having broken even the year before.

It said it will “robustly defend” itself from claims made by Australian law firm Slater & Gordon, which acquired the bulk of Quindell for £637m in a disastrous deal sealed three years ago.

As a result it said it has upped its supply of legal costs in relation to the case by 34pc since December to £4.3m.

“We will continue to address the legal and regulatory matters that face the group with focus and determination,” the company said.

“We have resolved multiple matters but the largest of our litigation and threatened litigation remain outstanding.” It added: “Our position remains that Slater & Gordon’s allegations of deceit and the associated breach of warranty claim are wholly without merit.”