3257 days ago
Short Slater & Gordon has been a cracking trade ever since it announced the purchase of Quindell Legal Services. For British bears the weakening of the overvalued Aussie Dollar has been a bonus. The maths are shocking (and of course will get worse as the various Quindell frauds unravel).
3400 days ago
Who is Phil? He is a big cheese at Quindell Legal Services. So why did he leave the Quenron (QPP) sinking ship so suddenly on New Year’s Eve – filings at company’s house show that his directorship was terminated on that date.
To show how important Phil was I quote from a recent FT article:
3475 days ago
The video of my presentation “Quindell, how it has committed accounting fraud, has not generated a cent of cash despite what it claims and why it is worth 0p” should now appear tomorrow. Pro tem here is part 2 of the Quindell Legal Services – More Red Flags Vicar series. QLS served up so many Red Flags it needs two articles. Part One can be found HERE. Now moving on.
3476 days ago
And so Quindell Legal Services, the biggest part of the Quenron Group (QPP) has filed its accounts. Also of interest is the fact that it filed two annual returns for last year. Would Quindell care to deny that it had a spot of bother with its capital adequacy forms filled in with the FCA? That might explain a few of the red flags but not all.
The first thing to note is that Companies House stamps the accounts for calendar 2013 as received on October 1st. that is a £150 fine for Quenron. It is small beer although it is good that someone is making money from the company. But it is indicative of a badly run enterprise.
I note also that KPMG – which earned £60,000 for compiling this document that contradicts itself – did not actually attach a signature to its sign off.
3476 days ago
The Quenron (QPP) subsidiary accounts are now landing thick and fast at Companies House and I am ploughing through them but have unearthed the stinkiest yet – Compass Costs. The numbers stated are different in different places, there is revenue missing and there is a curious dividend paid. It stinks to high heaven and since Compass is part of an FCA regulated entity (Quindell Legal Services of which more later) this is certain to attract FCA attention.
Compass Costs was, according to the Quenron RNS, bought on April 2 2013 and is “one of the UK's leading legal costs consultancy and costs drafting firms.” The consideration was 80 million shares which according to Quenron was worth £14 million since the agreed price per share was 17.5p. This was, of course, bollocks as the share price then was 8.7p so the real price paid was £7 million. But remember those two numbers 14 and 7.
3561 days ago
In 2014 Quindell (QPP) will book revenue of £228 million (28% of group sales) from Industrial Deafness claims where it will generate not a cent of cash. Those revenues are based on the estimates provided by Mr 2+2 Can =5 Rob Terry and his fellow directors and will ensure Quindell hits EPS forecasts. But anyone looking at this industry must recognise that Terry is bullshitting. Here’s why. Meet The Hearing Clinic.
The Quindell assumption is that as of June it will do 6,000 cases a month. It assumes it will them all. And that it will earn £9,000 per case. Assuming a 15 month average conclusion (the industry average is 20-36 months) it is booking £6500 of revenue for EVERY case taken on within 12 months.
Last year there were less than 20,000 successful cases in the whole of the UK. That number has been static (actually falling a bit) for a while. There were however 60,000 failed cases as ambulance chasers moved into this area from whiplash.
That should tell you that Quindell has not got a hope in hell of generating 72,000 winning cases a year.
So where are the new claims coming from?
3571 days ago
Quindell (QPP) did not issue an H2 profits warning for 2013. Instead it hit targets and managed to get away a £200 million equity raise. Without that cash it would have gone bust in January. But my attention is drawn to the recent Canaccord buy note (page 18) which begs the question of just how Mr 2+2 can =5, Rob Terry, managed to hit his numbers and avoid a profits warning.
Around two thirds of Quindell’s reported profits in 2013 came from Quindell Legal Services (QLS) with the number very heavily second half weighted. And in 2013 nearly all of Quindell’s business was RTA related. Now read what the Canaccord note (remember Canaccord is joint broker so “onside”) states:
3590 days ago
Quindell (QPP) announced just before its AGM a mammoth and instantaneous change of business in its largest division (Quindell Legal Services, QLS) a – shift into industrial deafness. I find its numbers startling and would like to know the assumptions that it makes to justify its claims.
Quindell has claimed that as of June it will be generating 75% of divisional profits ( and QLS is 75% of group profits) by processing 6,000 deafness claims a month on which it will earn an average fee of £9,000 with most cases settling in 9-12 months. It says that it will source business from clinics who do an initial pre-screen. Okay. That sounds great. Until you start talking to folks who have been operating in this sector for years. Which I have been doing all day.
3599 days ago
One of the reasons that Quindell (QPP) had its application for a main market listing canned by the UKLA was that its business had changed so quickly. We are still waiting for Quindell boss Rob Terry to tell us ALL the reasons for his regulatory rejection. But the speed of change at the main “profits” generator Quindell Legal Services is breathtaking. Numbers presented to City analysts yesterday leave me utterly baffled. I am, of course, thick as two short planks - perhaps a Bulletin Board Moron might care to explain it all to me.
Back in August 2013
3635 days ago
Probably I am not as clever as your average Bulletin Board Moron but here is another case of why I just do not understand maths Quindell (QPP) style. I have asked the company to explain the following which is based 100% on documents from the Quindell website…It has had four days to comment but has not done so.
My studies are of Quindell Legal Services (QLS) which in 2013 was the vast bulk of the business. I now urge my dear readers to visit the 2013 full year results presentation document on the Quindell website at http://www.quindell.com/images/uploads/irdownloads2014/20140331_investor_roadshow.pdf - go to page 22.
You will see
