Quindell PLC issued an RNS this morning announcing the resignation of Rob Terry as Chairman of the Quindell Group. Mr Terry will however continue working with the Company as a consultant.
Steve Scott is also leaving the company immediately and Laurence Moorse is leaving once an orderly handover has been completed.
see: http://www.londonstockexchange.com/exch … 9GBGBXAMSM
But will the Rob Terry Announcement be a Positive move for Shareholders?
The company has been the subject of a vicious shorting attack over the last 6 months with the share losing 80% of its value and the chairman subject to a virulent smear campaign on the internet and social media.
It is thought is these changes will be seen as a positive move by some city institutions, one that will put the matters to rest and attract new institutional investors.
Rob Terry and his Directors have been asked to step down for one reason – it’s in the best interests of the company and shareholders.
Once the dust settles and investors realise this is a positive development it will be seen as a turning point in the future of the company.
This mornings RNS can be seen as a positive move by the business for the following reasons:
1. The Financial Director would not be remaining in his post if he had any reservations with regard to the companies operating figures.
2. The Directors leaving the company are all implicated in the controversial EFH deal. This is a clear message that the governance of the business is robust.
3. Clears the way for the appointment of a high caliber Chairman respected by the city.
Our view is that his resignation will do much to appease the doubts of many in the City – the decision provides a new baseline for the company to build on its track record of growing the business; growing earnings; growing margins and profits; and returning shareholder value.
In the coming months we fully expect to see:
o An improvement in sentiment towards the company.
o News of new contracts in Canada and the USA o A reduction in Short Positions.
o News of a market listing in North America.
o Further institutional investment.
o Positive Cash generation exceeding market expectations.
o Impressive year-end trading results that exceed forecasts.
o Re-rating of the share price.
Audited Year-End results for 2014 are due by the end of March and a Pre-Close Statement expected by early January. It is expected that these will exceed all market expectations and will signal a rapid share price re-rating to reflect the real value of the company.