Alternative business structure Quindell’s bullish response to recent criticism has extended to the company now exploring the possibility of a dual listing in the US.
However, Quindell’s share price has still to recover much of the ground lost since the Gotham City Research report that sent it tumbling, closing yesterday at 21.5p.
It had been nearly 40p before the research was published, and fell to 18p afterwards.
Quindell chairman Rob Terry thanked “a number of our existing institutional investors, including key US investors” for “significantly increasing their shareholding over the last two weeks”.
The company undertook a roadshow in the US recently, and he said it had proven “very encouraging for our future prospects in this market, with approaching 16% of our stock now held by US investors”.
Quindell is targeting a move from the AIM market to the full London Stock Exchange, and Mr Terry said that in addition “we shall now start to fully investigate the additional value of a dual listing in North America”.
Last week we reported that in the company in a show of support and confidence following the Gotham research, and since then the last remaining member has followed suit: Laurence Moorse, who is the group finance director, spent £20,000 to boost his shareholding to nearly 18m shares, representing approximately 0.29% of the total issued share capital.
Two senior members of staff have also invested: Robert Fielding, group chief executive of the services division, spent £50,000 to take his shareholder up to 16.5m, and Tim Scurry, his counterpart in the solutions division, put in a further £25,300, taking his shareholding to more than 20.5m.
Mr Terry said: “I would personally like to thank all of those institutional shareholders who have taken the step to publicly confirm their support for the company, as well as all the Quindell staff that have demonstrated their conviction by purchasing shares and reiterate that we will repay this support by continuing to deliver market leading rates of growth and profitability.
“In confirmation of this delivery we are pleased to announce that the last month has once again exceeded all our internal expectations for all key measures, including pipeline growth, revenue, profitability, EPS and operating cash generation.”
Quindell also announced a two-year extension of an existing contract with an unnamed broker, which it described as “one of the UK’s leading insurance brokers which is owned by one of the world’s largest global insurance companies”.
It said: “Over the past year of working with Quindell, and therefore leading to the extension, the customer journey was significantly improved compared to industry norms and to that experienced historically. The contract also provides the UK leading insurance broker with access to Quindell’s market-leading Challenger technology platform.
“This contract extension will provide Quindell’s unique claims-handling facility for both fault and non-fault claims, supported by a complete technology enabled supply chain offering incorporating elements such as vehicle repair, onward mobility and legal services.”