Quindell suffering as shares fall 28pc

SHARES in scandal hit insurance software firm Quindell collapsed yesterday on their first day of trading since the company revealed it is being investigated by the Serious Fraud Office, writes

Laura Chesters.

Quindell’s SFO examination follows a Financial Reporting Council probe and an ongoing investigation by the Financial Conduct Authority (FCA).

The AIM-listed company revealed deepening losses at a much-delayed set of annual results for 2014 on Wednesday as well as a £157m writedown on its businesses.

Shares had been suspended since June, just before it revealed that it was under investigation by the FCA.

It is being probed for ‘business and accounting practices’. A PwC report said the firm’s previous management had used ‘aggressive’ and ‘unacceptable’ accounting practices.

Quindell, which was built up by Rob Terry from a golf resort to a multi-million pound outsourcing services group, has been wracked by scandals. Terry was ousted at the end of last year.

Its new management, led by chairman Richard Rose, who is also the chairman of online electrical goods retailer AO.com, is now faced with turning the company around.

It sold its legal business to Australian law firm Slater & Gordon and has £535m in cash and promised to return at least £1 per share to investors.

But investors were not yet convinced of its turnaround, and it finished the day down 28pc, or 35.25p, to 89.5p.