(Adds details, analyst comment, share movement)
June 19 Quindell Plc, a British IT
outsourcing and consultancy services provider, assured investors
that it would meet full-year cash and earnings expectations, and
appointed a new chief executive.
The company has been in the limelight since April when
U.S.-based Gotham City Research questioned Quindell's revenue
model and profit quality.
Quindell's AIM-listed shares jumped as much as 7 percent in
early trade on Thursday. They have shed more than a quarter of
their value since Gotham's comments on April 22.
The company, which provides services mainly to the insurance
and telecom industries, said cash collection was in line with
expectations, with its legal services unit raking in about
500,000 pounds ($846,900) a day in the second quarter.
Quindell said it expected to post strong operating cash flow
in the final quarter of this year.
"There have been some questions about the operating cash
flow of the company," Daniel Stewart analyst Sophie Blandford
said, adding that Quindell saying it had collected half a
million pounds a day in the second quarter was a "very positive
The company also said adjusted earnings per share would meet
full-year market expectations, and that it expected to get 250
million pounds per annum from signing a number of new contracts
and extending existing ones.
Quindell promoted Robert Fielding, who heads its services
unit, to chief executive. It said former CEO and Chairman Robert
Terry would retain his role as chairman.
Shares in Quindell were up 4.6 percent at 18.38 pence at
The shares plunged last week after the company could not
meet the requirements for a premium listing on the London Stock
($1 = 0.5904 British Pounds)
(Reporting by Richa Naidu in Bangalore; Editing by Gopakumar