Alternative business structure (ABS) Quindell, which posted a substantial increase in revenues in its legal services division this summer, has brought in PwC to carry out an independent review on the company’s accounting policies.
The review has already commenced and will evaluate the group’s main accounting policies and expectations as to cash generation into 2015. The group is also undertaking a search for a permanent chairman and new board members but, although the company announced yesterday (10 December) it had renewed its contract with Swinton to process motor claims including legal aspects, its share price has continued to slide.
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.’
Professional services and digital solutions provider Quindell said in a statement: ‘The Board is satisfied with the overall trading performance of the Group throughout a period in which a number of distractions have been encountered, and thanks its staff, customers, referral partners and suppliers for their support during this challenging period.’
However, Quindell’s legal services division, which trades under several names including The Compensation Lawyers and Compass Law, posted a huge revenue increase in the first half of 2014 bringing in £179.6m – a 139% increase on H1 2013. The division also recruited Stefan Leon Borson as group chief legal and communications officer, who joined from Redbus Media Group where he was chief executive.
The legal department gained its ABS licence from the Solicitors Regulation Authority in December 2012, which saw the company acquire three law firms Silverbeck Rymer, Pinto Potts and The Compensation Lawyers and has since added further brands.