PwC makes Quindell wait

The Quindell news machine churned out another update on Friday, this time warning that accountants at PwC need more time to review the insurance outsourcer's main accounting policies and expectations as to cash generation into 2015.

Work on the review began almost three months ago, but has taken longer than originally anticipated "given the high level of corporate activity of the group". Quindell says it is considering advice about its main accounting policies, particularly on revenue recognition in the professional services division, although no conclusions have been reached.

However, shareholders will only have another "few weeks" to wait before the review is complete. Depending on your view, this could be taken either way - needing extra time to get it right is no bad thing, but some will doubtless conclude that PwC may have uncovered some nasties. We'll see.

Still, after an initial 14% slump from five-week highs, the share price has narrowed intraday losses to trade 5% down at 93p. A trade of 80,000 shares did go through this morning off order book at 78.256p, although the more realistic on-market low is 85.02p.

Having considered updates both from PwC and future chairman and executive deputy chairman Richard Rose and Jim Sutcliffe, company chiefs say they have decided to run two divisions - professional services and technology, which will include insurance software, telematics and telecoms businesses.

This means there are several businesses and assets that are non-core and which will likely be sold off. Of course, we already knew that, and Quindell is still in talks to sell the professional services operation to Slater & Gordon, although the Aussie law firm is playing hardball over price. 

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