Watchstone, formerly Quindell, leaps as it rejoins AIM after £414 million payout

Shares in Quindell have resumed trading on AIM after the scandal-struck insurance software firm, now known as Watchstone Group, rewarded shareholders with a £414 million payout.

The company, under investigation by the Serious Fraud Office for its past accounting and business practices, shot up 95.08p, or 136%, to 165.08p.

This came after a one-for-10 share consolidation and a 90p-a-share return to investors.

The payout follows the £637 million sale of its largest division to Australian law firm Slater & Gordon.

Watchstone, led by Indro Mukerjee, still faces legal action from shareholders who nursed heavy losses as the share price plummeted.

Broker Peel Hunt started coverage of the stock today with a buy recommendation, calling the company “a changed proposition”, in the first research note on it in almost a year.

Analyst Andrew Shepherd-Brown predicted the firm, which in August admitted it had been loss-making for years despite claiming to have turned a profit, will be profitable by the end of 2017.