Watchstone sells property and maintenance services businesses

Watchstone Group, the insurance technology firm formerly known as Quindell, has disposed of its property and maintenance services businesses as it looks to strategically focus the company on its key growth areas.

The group’s subsidiary Brand Extension has entered into an agreement to dispose of the of BE Insulated and Carbon Reduction Company for a nominal consideration of £1 to The BE Smart Group.

Watchstone said the terms of the agreement reflect the on-going cash losses and investment requirements of BEI and CRC.

Following completion of the agreement, the group will cease to operate directly in the property and maintenance services sector.

The company reckoned the disposal would save it £1.5m to £2m a year.

Chief executive officer Indro Mukerjee said: “The strong focus on quickly addressing losses is central to our work and we've been making good progress overall.

“We've acted with integrity and speed to realise significant cost savings, while removing liabilities and enabling us to continue with the further work on the transformation of Watchstone.”

Watchstone shares rocketed at the end of December after they resumed trading on AIM, having been temporarily suspended ahead of a court hearing and a share capital reduction.

They were also temporarily suspended in June after the Financial Conduct Authority began an investigation into the company’s accounting practices.

At 1000 GMT, shares were up 6.2% to 285.00p.