These are all good simple indicators as to why Quindell is and will continue to be a successful business.
1) Payment of Corporation Tax
The company paid £30.7m in Corporation Tax for the 6 month period ending June 2014. Cenkos forecast £72million payable in total in 2014.
Only successful businesses pay Corporation Tax.
2) Forensic analysis of accounts and business
Due to many spurious allegations the business has had its accounts and announcements forensically challenged for accuracy. It is inconceivable KPMG haven’t checked every single detail before signing off the accounts.
At least three brokers have carried out an in-depth analysis of the business and would not risk their reputations unless 100% convinced of the business model.
All believe Quindell to be a successful business.
3) Major Contract Wins
No organisation would sign a major contract with Quindell without carrying out due diligence. Quindell are signing major contracts.
4) Cash Positive and Increased Cash Inflow
Crossed over to cash positive in July 2014 ahead of forecast.
Quindell guidance is £30m – £40m net cash inflow Q4 and £100m net inflow (H1 2015).
All indicates Quindell are successful and will continue with this success into the future.
The fact that Directors have bought large amounts of shares in the last 12 months. Paying as much as 380p a share is also a great indicator as to what the Board of Directors think the future holds for the business.