I have written before how I understand very fully how Quindell (QPP) CEO Rob Terry wants to hang out with those few people who stuck by him after he presided over the near collapse of The Innovation Group. But there are limits and this brings me to some statements issued by Quindell regarding Quindell Property Services (QPA) which just do not stack up. Rob now has very serious questions to answer.
On 3rd May 2013 Quindell announced the:
acquisition of Quindell Property Services Limited ("QPS"), a newly formed Group providing disruptive outsourcing and technology solutions to the property insurance market place.
- Acquisition and controlling stake in innovative SaaS based claims outsourcer for shares at a premium
- Fast tracks Quindell's expansion into global property insurance claims market
- Earnings neutral in the current year and significantly earnings enhancing for 2014
- Potential for £10 million profit before tax from property services in 2014
The terms of the acquisition have been satisfied by the immediate issue of 65,978,572 Quindell shares representing approximately 1.6% of the Group's issued share capital, and further issues of up to 21,111,111 shares issued contingent on the business achieving £2m of profit for 2013.“
I have underlined a couple of phrases for your benefit.