Former Quindell said the new slimmed down group sees slightly higher revenues from core businesses
Watchstone Group, formerly Quindell, said overall net losses and expenses of over £6m suffered in 2017 have been extinguished as a result of the sale or closure of businesses and restructuring.
During the year to December 2017, revenues rose slightly to £44.1m from £43.0m in 2016.
Revenues from what the company described as its underlying businesses – healthcare and Ingenie, rose 5% to £44.1m. Non-underlying businesses contributed only £1.0m of revenue in 2016. In the interim, BAS was sold and Hubio was reclassified to discontinued operations.
Overall trading results for the underlying businesses are “expected to be broadly in line with expectations”, Watchstone said.
“During 2017, we substantially completed the work to simplify and rationalise the group involving the closure or disposal of loss-making businesses and reducing the size and cost of the central overhead,” the company said in a statement to the Stock Exchange.
The central team now comprises just three full time staff to assist executive directors Stefan Borson and Mark Williams.
Watchstone said the full benefit of these changes will only be seen in 2018 but are expected to reduce the central costs by approximately 50%.
Cash and term deposits on 31 December 2017 totalled £62.8m, down from £67.2m at the end of June, excluding £50.1m in escrow pending resolution of the £637m lawsuit from Slater and Gordon over the 2015 sale to the law firm of Quindell’s legal services division.
Ingenie saw revenue for the year rise to £14.4m. Profit will be marginally below 2016 because of the impact of the Ogden rate which caused “instability in young driver motor policy pricing”.
In December, Selim Cavanagh joined Ingenie as chief executive from LexisNexis Risk Solutions, where he held various senior roles including VP Telematics, VP Motor Insurance and MD of its Wunelli telematics business unit, after a background in consumer insurance at AXA UK.
The SFO investigation continues and Watchstone said it is cooperating fully.