Quindell share price: Company plans to pay 90p to shareholders next month

on Nov 2, 2015

Quindell Plc (LON:QPP) announced today details of its plans to distribute 100p per share to shareholders following the sale of the firm’s professional services division (PSD) earlier this year.

The company said an initial 90p will be paid as early as next month, subject to court approval, while the second tranche is expected to transpire by the end of 2016, when £50 million tied up with the PSD disposal will be released.
Quindell said a circular further detailing the transaction will be issued to shareholders on November 11, following by the required general meeting on November 26. A court hearing on the case is expected on December 16.
An additional payment is planned for when contingent considerations from the PSD disposal are realised. The amount is projected at about £39.6 million.
The company said the payout decision is “both prudent and appropriate” and noted that it will make the payments in a “tax- and cost-efficient manner”.
Quindell’s share price had slipped 2.20 percent to 100.00p as of 14:08 GMT today, well below the 0.3 percent drop of the broader market.
The firm’s share price had surged beyond 600p in early 2014, but slumped following an attack by short-sellers, who exposed the company’s dubious financial statements. Quindell is under a criminal investigation by the Serious Fraud Office over the inaccuracies, which massively overstated the firm’s 2013 and 2014 profits and are currently being labelled as ‘aggressive’ accountancy practices. The company itself subsequently re-stated its profit statements for the period in question.
In 2013, Quindell reported a profit of £107 million, but, in fact, the company was £64 million in the red, while last year’s reported £96 million loss was actually £282 million.
Consequently, this year the company had to sell its largest unit, the professional services division, to Australian rival Slater and Gordon Limited for £637 million in order to stay afloat.

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