UK 13:56 Monday, 26 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
In 2014 the esteemed firm of KPMG (Southampton office, three partners) started its audit of Quenron just after Christmas and by March 31 had done enough to allow Quenron to publish the 2013 results – less than three months and the job was largely done. When did PWC start work on reviewing Quindell’s fraudulent accounting policies? Early December 2014.
Already a member? Sign in
• All premium articles
• Tom Winnifrith’s Bearcast
• Access to all the entire nearly 13 year archive
• ShareProphets Daily Newsletter
Cancel any time
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments
MrMoto
I agree that hundreds of millions should be written off in goodwill and accruals. But have a bad feeling that PWC will just bottle this, give QPP a bit of a slap on the wrist and a minority of the writedowns will be produced.
I just don’t have the confidence in these accounting firms and the system in general that the correct thing will happen re:PWC findings. I believe QPP will still go down, perhaps in late 2015 – but nothing works in a straight line with QPP.
Malc
Hello Tom
I have followed you closely since coming across your site.
My feelings about Igas are like yours.
About Quindell, I was with you re the big fat zero. Are you still on the 0p, or do you see a bottom price that is about zero p please and if so what is it.
Keep up the good work
vinks
Quindell saga…another rumour to boost the SP?
From AFR.com 29-March 2015 – ASX-listed legal eagle Slater & Gordon is poised to acquire the professional services division of British insurance claims processor Quindell, lending sources told Street Talk.A deal has been struck at roughly $1.2 billion or seven times earnings before interest, tax, depreciation and amortisation. The purchase will be predominantly funded by an $890 million equity raising, managed by Citigroup and Macquarie Capital.Sources said an agreement was close to being finalised on Sunday night with the transaction set to be announced as early as Monday morning Quindell, which is listed on London’s Alternative Investment Market, has been in exclusive negotiations with Slater & Gordon since January. As part of the transaction’s due diligence, it’s understood over 8000 case files were reviewed by a team of 70 lawyers over six weeks. Analysts said the acquisition, which brings the No.1 and No.3 UK players together, was likely to be more than 30 per cent earnings accretive. It will double Slater & Gordon’s UK market share and propel the company into the ASX-100, potentially putting it on the radar of large cap fund managers.
Slater & Gordon shareholders are known to be supportive of the purchase. As part of the deal, the two parties are understood to have agreed to an innovative earn-out agreement around Quindell’s troubled noise-induced hearing loss unit. Since becoming the world’s first publicly listed law firm in 2007, Slater & Gordon has grown significantly via acquisitions.It has grown personal injury claims market share in Australia to 26 per cent from 8 per cent since listing. In the UK, which is five times the size of the Australian market, it has grown to a forecast 5 per cent share this year from nothing in fiscal year 2011
Malc
Thank you.
If the deal does go ahead and confirmed via RNS, will the SP steady around 250p to 300p? Got figures from ADVFN posters but taken with pinch of salt.
Little did I know but one of my family has just declared an interest, bought many months ago above one quid,
Many thanks in advance to all
Tom, I’m still with you even if price shoots up as we cant all be spot on all of the time.
Good luck
MrMoto
I’ll tell you what though. This Quindell listing has certainly provided some entertainment that’s for sure. Will be fascinating to see what RNS’ are released from both parties either tonight in Oz or LSE tomorrow.
Is this another false story??…again!
Would S&G really spunk £700m on a Quindell business??
Have S&G seen the PWC report before the market??
Is this all a ruse to get the price up for a placing??
MrMoto
I mean WTF has happened to the FT?
I think I could write the news piece better than this, shocking
http://www.ft.com/cms/s/0/58abb8c6-d62e-11e4-b3e7-00144feab7de.html#axzz3VnfnFkXP
Gateway
MRMOTO – yep, shocking, full of factual errors, but if the gist of the story is correct then QPP shares will fly tomorrow. Humble pie eaten in huge quantities by QPP detractors too. We’ll see if S&G release anything on the ASX tonight (from 10:30pm onwards if it’s coming). They’ll have to suspend their shares according to ASX rules.
john g
Tom.. if this does materialise…. i dunno where you’ll be able to be buy a big enough humble pie for you to consume :
March 29, 2015 6:49 pm
Quindell nears Slater & Gordon deal
Arash Massoudi and Henry Mance — London
Slater & Gordon, the Australia-listed law firm, is close to acquiring the professional services arm of controversial British insurance claims processor Quindell for about £700m, according to people familiar with the situation.
Quindell was expected to return £500m of the proceeds from the sale to shareholders, one of those people said
The deal marks a recovery for Quindell, which some market participants had suggested was running out of cash late last year when it commissioned PwC to investigate its weaker than expected financial results. Its market capitalisation was £609m on Friday, compared with a peak of more than £2bn a year ago.
Slater & Gordon, one of the world’s first publicly traded law firms, has been expanding aggressively in the UK, mostly handling “no win, no fee” personal injury claims. In its home territory, it has a track record of bringing class actions. The UK accounted for nearly half its A$418m (US$327m) revenues last year and its market capitalisation on Friday was £795m.
The transaction could be unveiled later on Sunday, ahead of the Monday opening of Australian markets, although people familiar with the discussions cautioned that the details were still being finalised.
Under the terms of the deal, the Australian law firm is poised to pay £637m in cash for Quindell’s core road traffic incident unit. It will also include a share of receipts from the settlement of hearing loss cases, which could be worth a further £100m.
Quindell’s professional services division — which mainly handles the legal and other aspects of car insurance claims — accounts for almost 90 per cent of its revenues and profits. Slater & Gordon’s acquisition values the unit at about 7 times its earnings before interest, depreciation, taxation and amortisation.
Quindell’s overall valuation has still fallen since a short selling attack led by Gotham City Research a year ago.
Gotham published a dossier of allegations about its profitability and corporate governance. The Aim-quoted company became a cautionary tale for London’s junior stock market, becoming entangled in various scrapes including a misdescription of a directors’ share sale as a purchase.
Its joint broker Canaccord Genuity and its public relations adviser Redleaf Polhill both resigned last year.
Quindell’s shares have recovered in recent months, after it disclosed in January that it had entered into negotiations with Slater & Gordon over the sale of its legal services division, although they remain sharply lower than a year ago.
The group’s founder Rob Terry is unlikely to benefit greatly from the deal, having reduced his shareholding below the disclosable threshold of 3 per cent following his ousting as chief executive late last year.
Slater & Gordon will finance the purchase with an AS$890m equity raising.
The professional services unit had revenues of £177m in the three months to September 2014.
Quindell’s other division, “digital solutions”, provides black boxes for use by motor insurers.
Quindell and Slater & Gordon did not comment. Citi and Greenhill are advising Slater & Gordon.
Daniel Victor
You’d expect Slater and Gordon to say something now.
Daniel Victor
This surely is something that Slater and Gordon will be forced to comment on.Any such placing would have a material effect on their share price.And Australia opens before London..
john g
http://www.afr.com/street-talk/slater—gordon-carves-up-in-uk-with-quindell-acquisition-20150329-1ma5qf
Mar 30 2015 at 12:15 AM
Slater & Gordon carves up in UK with Quindell acquisition
ASX-listed legal eagle Slater & Gordon is poised to acquire the professional services division of British insurance claims processor Quindell, lending sources told Street Talk.
A deal has been struck at roughly $1.2 billion or seven times earnings before interest, tax, depreciation and amortisation. The purchase will be predominantly funded by an $890 million equity raising, managed by Citigroup and Macquarie Capital.
Sources said an agreement was close to being finalised on Sunday night with the transaction set to be announced as early as Monday morning
Quindell, which is listed on London’s Alternative Investment Market, has been in exclusive negotiations with Slater & Gordon since January. As part of the transaction’s due diligence, it’s understood over 8000 case files were reviewed by a team of 70 lawyers over six weeks.
Analysts said the acquisition, which brings the No.1 and No.3 UK players together, was likely to be more than 30 per cent earnings accretive. It will double Slater & Gordon’s UK market share and propel the company into the ASX-100, potentially putting it on the radar of large cap fund managers.
Slater & Gordon shareholders are known to be supportive of the purchase. As part of the deal, the two parties are understood to have agreed to an innovative earn-out agreement around Quindell’s troubled noise-induced hearing loss unit.
Since becoming the world’s first publicly listed law firm in 2007, Slater & Gordon has grown significantly via acquisitions.
It has grown personal injury claims market share in Australia to 26 per cent from 8 per cent since listing. In the UK, which is five times the size of the Australian market, it has grown to a forecast 5 per cent share this year from nothing in fiscal year 2011.
The UK accounted for nearly half of Slater & Gordon’s $418.5 million revenue last year.
Quindell’s professional services division is the largest personal injury legal business in the UK, with an estimated 7 per cent slice of the market.
Citi and Greenhill Australia advised Slater & Gordon.
robert
If you want to know what the consequences might be for anyone guilty of misrepresentation of finances of a plc look at mark woodbridge of torex fame. He got 4 years last week.
john g
Deal confirmed…£637m cash
http://www.asx.com.au/asxpdf/20150330/pdf/42xl8qvshx0gwf.pdf
Tom… how are you going to explain this away… oh dear
TW note - see article 7 * EBITDA. well i guess i was 100% vindicated on fraudulent accounting then, Read my article2+2=4
Tom
You were right about Qunidell, not wholly, but overall you were right
Keep the faith
2+2=4
Phil
Well I’m still short on Quindell and to make it even more exciting I have a heart op starting at 6:30am, I’m leaving at 4:00am to drive up to the hospital, so lets see what I wake up to and whether the short survives.
I’m undecided whether to nestle a stop up to it and let it be spiked off. I’m still bearish on the future for Quindell, the clue lies with the PwC report and I think S&G will come before that one.
For the record my beakeven sp is £3.98, thanks to those hedges calls. There was a time what they are going to do to me tomorrow would have taken in excess of 3 months in ward stay, as it is I should be kicked out Tuesday lunchtime.
I have a transplanted heart so tomorrow is a little tricky for someone like me, they have a shelf life. Summer is coming, the nights are getting longer, I’ll decide just before I go but I rather think I should just accept I was wrong and let it go, and enjoy the summer. Good play thou, those hedge calls, nice trick.