Quindell, which last year described itself as the world’s largest stock exchange-listed legal services firm, has temporarily suspended trading in its shares on the London Stock Exchange.
The company confirmed this morning that it was suspending trading pending an announcement and publication of a document.
The update arrived this afternoon and was titled a 'shareholder circular correction'. Quindell said the profits attributable in a previous statement to the stock exchange were greater than first indicated.
This week the company announced a deal to sell its professional services division to listed Australian firm Slater and Gordon for £637m.
That announcement said the profits before tax contributed by the division were £82.5m in the year ending 31 December 2013, and £113.4m for the six-month period ending 30 June 2014. In today's update, these figures were amended to £96m and £130.7m respectively.
Quindell said the difference was because it had failed to take account of two entities of the division.
The company's securities were due to be restored to trading at 3.45pm today.
Approval for the disposal is likely to be made at a general meeting of the company and its shareholders on 17 April. Should shareholders agree, Quindell will focus on its technology businesses and depart the legal services market.
The company also announced this week the initial results of a report into its accounting policies and expectations for cash generation into 2015.
Initial findings of the review, carried out by big four accountancy firm PwC, found the policies of recognising revenue and deferring case acquisition costs were ‘largely acceptable but at the aggressive end of acceptable practice’.
The Quindell board said it had already decided to take a ‘more conservative approach’ to accounting for revenue and profit in its financial report for 2014. The company has already pledged to adjust its reported interim results for the six-month period to 30 June 2014.
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