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Quindell (QPP) has announced what it believes to be a major deal. Oddly certain Bulletin board morons who have in the past been leaked confidential lawyer’s letters by Quenron have been pre-announcing this for days making a mockery of AIM rules re the release of supposedly price sensitive information. But that is the least of Quindell’s crimes.
The announcement states that: a “major insurer” has “contracted with Quindell to provide their (sic) insurance customers with its market-leading telematics technology solution and associated services, exclusively for five years. The Major Insurer represents over three million customers, 1,700 brokers and has a significant market share of the Canadian automobile insurance market. Over an initial period of five years, the Major Insurer will target to become a strong market leader in the development and delivery of telematics-based insurance solutions, and subject to the achievement of key milestones, committing to a goal of 120,000 telematics customers.
Where does one start? On a point of grammar the major insurer is a singular not a plural so it should be “its” not “their” – I’ll whizz Rob Terry an invoice for £150 + VAT for the grammar lesson and he should start accruing that cost right now.
Joking aside, this is a joke. The words “major insurer” are mentioned eleven times in the release but why is the partner being so shy in revealing its identity. There is no shame in linking up with Quenron is there? So what is this worth to Quenron?
120,000 customers sounds a large number but this is not saying that there is an order for 120,000 customers. If is committing to a target if certain milestones are passed. I am committing to a target of shagging Cheryl Cole (or whatever she is called until her next divorce) subject to certain milestones being passed including her not being quite so rude to that charming Mr Cowell. But will I actually shag Cheryl? Somehow I doubt it but I am committing to that target.
So what about the cash implications? Er…no mention of the terms of the deal or the cashflow implications. As we know Quenron has shifted back the payroll date and has an appalling track record of paying its suppliers because it faces a major cash crunch. In the words of Gotham City “it is behaving as if it is on the verge of bankruptcy”. It had to shelve the RAC deal because it could not afford the upfront costs of installing black boxes. So how will it afford the upfront costs here? There is no detail given.
Oddly this is not Quenron’s first such deal in Canada. It announced a raft of them with big numbers in the share ramp ahead of last November’s bailout placing. I wonder how they are going?
I refer you to a November 8 2013 RNS:
Quindell Portfolio PLC, (AIM:QPP.L) the provider of sector leading expertise in software, consultancy and technology enabled outsourcing in its key markets, being Insurance, Telecommunications and their Related Sectors, is pleased to announce that CAA South Central Ontario (CAA SCO), has contracted with Quindell to provide their auto club members and insurance customers with new telematics technology and services.
Quindell has agreed a contract with CAA SCO on an exclusive basis for minimum period of 5 years in which the group will provide the technology for all of CAA SCO's telematics initiatives to its membership base of over 1.9 million members.
Based on a 10% to 30% telematics take-up in Canada with automobile association members, revenue potential of C$79m to C$237m per annum.
CAA was set to launch in January 2014. I wonder how that is going? Calls are in.
This is just more hogwash from Quenron. Want a small bet that revenues from the CAA deal to date are pretty much sod all and are nowhere near the numbers touted last fall? And now we have more hogwash from a company that has demonstrably LIED TO INVESTORS VIA RNS AND COMMITTED WHOLESALE ACCOUNTING FRAUD
Sell. The target for the shares is 0p.
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