Listed legal service provider Quindell has commissioned big four accountant PwC to review its business operations after a tumultuous year’s trading.
Quindell today announced on the London stock exchange that PwC will conduct an independent review into the group’s accounting policies and cash generation expectations for 2015.
The review will focus on potential income from noise-induced hearing claims and will include consultation with the company’s bankers, advisers and auditors.
Initial work on this review has commenced, the statement said, and the board will update shareholders on its results and provide future guidance in due course.
The company’s share price has plummeted in the last 12 months after a series of setbacks that culminated with the resignation of founder and chairman Rob Terry.
The announcement said this change marked a ‘natural point at which to take stock’ of the group’s position.
The board insisted it is ‘satisfied’ with the overall trading performance despite what it termed as a period full of ‘distractions’.
David Currie, interim non-executive chairman, said: ‘The appointment of PwC to conduct an independent review is the natural next step to give additional support to the board’s confidence in the business and will also assist the company in assessing its future strategy and outlook.
‘The search for a permanent chairman and new board members is ongoing and we will update shareholders as appropriate.’
Robert Fielding, group chief executive, said the business remains ‘robust’ with sufficient resources to carry out management plans.
‘I believe that we have a strong business, with great people and we look forward to the future with optimism,’ he added.
Earlier this month Terry and former finance director Laurence Moorse terminated shares agreement made with US firm Equities First Holdings.
Threee directors had agreed to transfer cash or shares to EFH if the share price fell more than 20% from the discounted value at which they were transferred. This duly happened as the share price more than halved to less than 50p per share.
The share price today, as of 10.30am, was down another 4% trading at 53.5p a share.
Market analysts detected a 'marked change of tone' in the company's announcements. 'Quindell is dispensing with the bravado. And that's no bad thing,' commented John O'Brien of TechMarketView.