Quindell stock rocked as PwC probes figures
TROUBLED insurance outsourcer Quindell witnessed its share price plummet 16 per cent yesterday morning after it announced it had hired PwC to carry out an independent review into its accounting practices.
Quindell said in a statement it had appointed the Big Four accountant to review its “main accounting policies and expectations as to cash generation into 2015”. Shares recovered during the day, closing 2.7 per cent down.
The move is thought to be an attempt by Quindell to provide hard proof to its critics that the recent controversies surrounding the company have yet to hit its underlying figures.
Interim non-executive chairman David Currie commented: “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 Hampshire-based firm’s share price rallied yesterday afternoon, yet the flailing stock has lost over 90 per cent in value since April, when mysterious US short-seller Gotham City Research published a 74-page dossier attacking the UK firm’s underlying business. Quindell has since successfully sued for libel.
But the company has remained embroiled in controversy, which has seen its founder and chairman Rob Terry step down last month, its joint broker Canaccord Genuity resign and Fidelity – one of the world’s largest investors – cut its stake in the company in half.