On Friday we explained how Quindell sees the market for industrial deafness claims as a big source of growth. What that also highlights is how the group is now in very large part a listed law firm.
That characterisation matters not just because it is different to the way Quindell described itself in its trading statement on Monday, as “a leading provider of software, consultancy and technology enabled outsourcing”. It matters due to the way revenues and profits are accounted for at law firms.
The key aspect to understand here is something called “work in progress”. As a law firm works for a client on a case for which it expects at some point to get paid, when does it recognise those fees? Read more
Quindell Plc (AIM: QPP.L), a leading provider of software, consultancy and technology enabled outsourcing in its key markets, being Insurance, Telecommunications and their related sectors is pleased to provide a pre-close statement and trading update for the six months ended 30 June 2014.
More on the numbers in a moment, but a new non-executive director arrives as well, David Currie, former head of investment banking for Investec. Read more
There is a bull case for Quindell, the country club which founder Rob Terry has turned into a full service legal and technological insurance conglomerate: the deaf.
Claims for industrial deafness, it was explained at a recent investor teach-in, are the next big growth area for legal services. Perhaps it is, although some might be surprised to discover that a company billed as “a provider of sector leading expertise in Software, Consulting and Technology Enabled Outsourcing” expects to make big profits from personal injury suits. Read more
At the heart of the debate around Quindell, since it came under attack from Gotham Research, are a few simple questions. How was the Aim listed business built; are there inconsistencies in the accounts; and where does the group really make its money?
In pursuit of answers there are the accounts and presentations the company has published. There is the dossier from Daniel Yu’s short selling outfit Gotham Research. And there is the company’s long rebuttal.
We’re going to have a look at them and, in an attempt to work out what is going on, pick out some of the details where further clarity and context might be helpful.
First up: Legal Services. Read more
Gotham City Research, after besting Gowex in a mere week, has decided to thank the Spanish people for their support, and address investors, doubters, haters and indeed all those who care about short selling and fraud. While quoting, of course, Batman:
It is not who we are underneath, but what we do that defines us. Read more
Quindell founder Rob Terry has relinquished the executive part of his title, but will remain chairman of the company he has built from a country club into a collection of businesses related to insurance claims.
Also, as previously announced, the company will undertake a 15 for 1 share consolidation at 6pm on Thursday. What happens if you own a number of shares that doesn’t divide by 15? Funny you should ask. Read more
Those waiting for the next piece of research from one of Quindell’s house brokers, Canaccord Genuity, will have to wait quite a bit longer.
The analyst covering the stock, Kevin Ashton, is on leave for personal reasons at the suggestion of the company. Read more
So far as we can tell, Quindell sells software and provides technology based outsourcing of some sort to insurance companies, as well as a bit of telecoms services.
In response to the attack by short sellers Quindell has instructed its learned friends to take legal action, and published a detailed rebuttal. Read more
The presentation on Quindell by Gotham City Research, which the company has rejected as defamatory, is a long piece of work with plenty of screenshots of the source material quoted.
One such screenshot, on page 36 of the document, is curious for what it might indicate about the construction of that presentation. The purpose is to highlight the author of Quindell’s 2012 annual report, but note the file location.
On Tuesday morning AIM listed Quindell plc was a “technology enabled claims outsourcing business”, whatever that is, worth £2.4bn.
Then Gotham City Research announced an initiation of coverage on the company with a target price of 3p and, well… Read more