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Watchstone Group revenues stable but Quindell legal case looms

Slater & Gordon has sued for reimbursement and compensation for the £637mln acquisition of Watchstone’s professional services arm

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Watchstone faces huge compensation clam from Aussie law firm

Watchstone Group PLC (LON:WTG), the tech formerly known as Quindell, has filed its defence against a huge compensation claim from Australian law firm Slater & Gordon.

Slater & Gordon has sued for reimbursement and compensation for the £637mln acquisition of Watchstone’s professional services arm after it had to write the whole value off in its 2016 accounts.

READ: Watchstone, formerly Quindell, sees losses narrow as it slims down, with legal battle looming

Watchstone said Slater and Gordon's allegations of deceit and the associated breach of warranty claim are without merit and should never have been advanced, though it has increased its legal cost provision.

Shorn of professional services, management has restructured the business around healthcare services (ptHealth and innocare) and insurance group ingenie.

Group sales in 2017 rose slightly to £44.1mln (£43mln), while net losses for the year were £6mln though these have now been cleared by restructuring and business closures.

READ: Watchstone Group, formerly Quindell, faces High Court battle with Slater & Gordon

Canadian business Hubio was the latest to be sold.

“The Group enters 2018 a far simpler business and we expect this year will be a period of re-focus and development for ptHealth and ingenie," said the statement.

Quick facts: Watchstone Group PLC

Price: 141.5 GBX

AIM:WTG
Market: AIM
Market Cap: £65.14 m
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