Quindell scotches report of major contract loss

Print This Post

28 November 2014


Stock exchange: shares up in early trading

Alternative business structure Quindell has quashed a news report of more problems for the AIM-listed company which led to a late dive in its share price yesterday.

The share price was up sharply in early trading, making up some of the loss seen yesterday, when it closed down 20% at 57p.

The report claimed that the company had lost a major contract and was suffering significant cash flow problems – a longstanding concern of investors given its practice of recognising income from personal injury cases before actually receiving the cash, while at the same time paying upfront for cases.

In a statement issued this morning, Quindell said that “contrary to speculation, it has not lost a major contract with a large claims management firm based in the North West of England and relationships with partners and customers remain strong. Further, the company confirms that the other negative statements in the same article are also untrue”.

Quindell’s rollercoaster share price had been on the rise since last week’s low point of 44p. In early 2014 it was as high as 660p.

It was also confirmed this week that former chairman Rob Terry and outgoing finance director Laurence Moorse had both given up the right to repurchase shares handed over to an American funder in the controversial sale and repurchase agreement that caused so much of a furore in the markets last week. This left Mr Terry with £6m from the arrangement.

The share price was also buffeted this week when Canaccord Genuity, until recently Quindell’s joint broker, stopped recommending that investors buy the shares, and called on stand-in chairman David Currie to carry out a review of the business.



Leave a comment

* Denotes required field

All comments will be moderated before posting. Please see our Terms and Conditions

Legal Futures Blog

How to make a case to the unconverted

Jonathan Whittle

The prospect of change is a daunting one, whether you’re a global firm or a small one. You might think that your firm’s working practices are fine, or that there’s no value in altering the way you do things because of the disruption it would cause. You might even see the benefits of using a different methodology, but still refuse to put the effort in to implement it – and you wouldn’t be alone. From our research in the 2016 report, The Riddle of Perception, we know that 73% of lawyers believe that adapting to change is not where their strength lies. However, it’s no longer optional.

November 16th, 2017