Quindell resumes AIM trading

Following its temporarily suspension on the AIM yesterday, Quindell recommenced trading yesterday afternoon.

Yesterday, Quindell issued a statement on the London Stock Exchange stating:

On 30 March 2015, the board of Quindell wrote to shareholders advising them that the company had entered into a conditional sale and purchase agreement to dispose of the Professional Services Division to Slater and Gordon Ltd for an initial cash consideration of £637 million and further contingent cash consideration payable in respect of the future settlement of its clients’ noise induced hearing loss cases. Words and expressions where defined in that circular shall, unless the context provides otherwise, have the same meaning in this announcement.

It is noted on page six of the circular that the profits attributable to the Professional Services Division were stated as follows:

‘During the financial year ended 31 December 2013, the profits before tax generated by the Professional Services Division contributed in aggregate £82,500,000 to the Group. During the six months ended 30 June 2014, the profits before tax generated by the Professional Services Division contributed in aggregate £113,400,00.’

The board has noted that there was a failure to fully transcribe profits related to entities forming part of the Disposal as disclosed in the Circular (predominantly in respect of iSaaS Technology Limited and Intelligent Claims Management Limited, entities previously included within the company’s ‘Digital Solutions’ division in historic financial information). As a result, the corrected total profits attributable to the Professional Services Division are as follows:

‘During the financial year ended 31 December 2013, the profits before tax generated by the Professional Services Division contributed in aggregate £96,000,000 to the Group. During the six months ended 30 June 2014, the profits before tax generated by the Professional Services Division contributed in aggregate £130,700,000.’

The company also confirms that during the financial year ended 31 December 2013, the adjusted profits before tax generated by the retained businesses (all save for those detailed as within the Professional Services Division) contributed in aggregate £6,800,000 to the group (excluding the net gain on re-measurement of investments on becoming associates and associates on acquisition of control in the 12 months ended 31 December 2013 of £4,200,000 as announced in Note 9 of the 2013 Annual Report). Subject to audit, during the six months ended 30 June 2014, the adjusted profits before tax generated by the retained businesses contributed in aggregate £8,500,000 to the group (excluding the provisional estimate of the gain on re-measurement of acquisitions/investments in relation to the Himex group in the six months ended 30 June 2014 of £14,500,000 as announced in Note 5 of the Interim Statement of 21 August 2014).

For the full statement please click here:
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12303494.html