27th May 2016 07:28
LONDON (Alliance News) - Watchstone Group PLC on Friday said trading in the first quarter of 2016 met its expectations as it posted a loss for 2015 amid continued asset impairments and writedowns being booked.
Watchstone, formerly known as Quindell, said it made a pretax loss of GBP178.0 million for the year to the end of December, compared to a GBP205.3 million loss the year before. The loss was mainly driven by the group booking exceptional costs of GBP157.6 million, primarily asset impairments, though such costs were smaller than the GBP200.4 million booked in 2014.
Post-tax profit hit GBP274.9 million, swung from a GBP374.5 million loss in 2014, mainly due to the gain made on the sale of the group's professional services division to Australian law firm Slater & Gordon.
Watchstone has been working to put its past as Quindell behind it. Quindell, once a darling of the AIM market, became one of its most controversial listings following a share dealing scandal and an investigation into its accounting practices. The insurance technology company changed its name to Watchstone last year following a complete overhaul of its board.
Revenue for the group declined to GBP58.8 million from GBP60.1 million, and the company said trading so far in 2016 has been in line with its expectations.
Sales in its ptHealth business, which operates physical rehabilitation clinics in Canada, grew year-on-year in the first quarter of 2016, while gross written premiums for the ingenie insurance broking business rose.
Revenue rose for the Hubio insurance technology business, though Watchstone said historic growth expectations for the business have proved unrealistic, while the BAS energy brokerage unit saw revenue rise and is now cash generative.
"Even taking the legacy, non-operational matters to one side, the group I joined in September 2015 was disproportionately complex and needed operational improvement. At the same time, I have found a number of good examples of advanced technology capabilities; capable people; and healthy market positions across our operating companies," said Watchstone Chief Executive Indro Mukerjee.
"I believe we have made strong progress towards our key objectives in the last three quarters and there is demonstrable momentum in our ptHealth/InnoCare, ingenie and BAS businesses with a strong determination to continue to set Hubio and Maine Finance/QSM on paths to maximise their potential," he added.
Shares in Watchstone were up 1.3% to 230.96 pence Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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