Insurance outsourcing firm Quindell saw its shares suspended from trading for hours yesterday (April 1) after an accounting error was discovered.
Quindell admitted it had miscalculated the profits for the professional services division sold to law firm Slater & Gordon for £637 million in March.
The firm had failed to add in the profits from two businesses it was selling as part of the deal: iSaaS Technology and Intelligent Claims Management. As a result, profits of the division had been underestimated by £17.4 million or 15 percent.
Quindell said that the business being sold contributed £130.7 million, once iSaaS and Intelligent were added, for the first six months of 2014. Originally, the firm said that profits were £113.4 million. This means that Quindell’s retained businesses contributed £6.8 million in 2013.