Quindell posts strong growth figures

Quindell has posted strong revenue growth in the first half of 2014, helping its share price to rise by 30% in one day.

The claims management giant said that its income was up by 117% at £355 million due to "strong organic and synergistic growth" and was keen to stress that less than 10% of its revenue came from businesses acquired in the last 12 months.

Quindell has been under severe stock market pressure ever since it was the target of an apparent shorting attack instigated by a critical report into the company's accounts by American investment research firm Gotham City Research.

In a trading update, Quindell said that its board had suggested that "given anticipated scenarios for H2, breakeven or better adjusted operating cash flow in Q3 and a significant adjusted operating cash inflow in Q4" there would be "no need to raise further funds to support market expectations in 2014 and beyond".

The report specified that most of the group's revenue was from its services division, which handles personal injury claims on behalf of insurers, and said that its profit before tax had nearly trebled to £154 million. It also reported that Quindell's legal services arm was collecting around £500,000 per business day by the end of June and that it expected to pick up £1 million per day by the fourth quarter of 2014.

Meanwhile, Rob Terry, the founder of Quindell has told The Daily Telegraph that he found the behaviour of Gotham City Research to be "disgusting".

He also told The Daily Telegraph that he would prove the short-seller wrong by delivering results.

“I try not to focus on it, I try to get on with running the business on a day to day basis,” Terry told the paper.

“Ultimately, I’ve no problem being on the record saying I think their behaviour is disgusting. The best way to deal with them is to deliver the results and deliver the cash generation.”

Quindell's share price closed at 235.5p on 14 July. 

Mark Dugdale