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Quindell share price up, plans to sell parts of its business

The UK claims processor Quindell PLC said on Friday is considering a division sale as an attempt to generate more cash.

“The group is in early discussions with a range of parties interested in exploring possible transactions with the group relating to a number of its operating businesses,” the company said in a statement.

However, Quindell did not disclose exactly which part or parts of its business is selling. The company has two core divisions, professional services and digital solutions. The first unit is centered around Quindells main insurance claims business, while the other develops technology used by insurers in order to monitor vehicles.

Quindell’s operating model includes investments in insurance claims, months ahead of receiving any payments, the company then records revenues as it processes the claims. Quindell has reported increasing profits, but it has almost depleted the £200 million it gathered from investors in late 2013.

“There can be no certainty that any of these discussions will lead to the disposal of any of the group’s assets,” Quindell insisted. Despite the warning, its shares rose as much as 19% as the move was seen as an effort to boost the companys overall performance.

The companys reputation was seriously hurt in April last year, when its shares dropped almost 50% after research firm Gotham City said that Quindell was ‘a country club built on quicksand’ and alleged that its business model was made up. Another hit for company came in November, when its founder Robert Terry stepped down after he was linked to a fundraising scandal.

“Regardless of the outcome of the discussions,” it said, ” the board remains comfortable with the groups overall cash position.”

Quindell PLC lost 3.47% on December 30, but gained 18.99% on January 2 and closed at GBX 47.00 in London, marking a one-year decrease of 83.72%. The company is valued at 205.13 million. is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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