The RNS dated the 8th December takes a different approach from what we would have expected from the previous leadership.
The RNS doesn’t embellish the positives or ignore the negatives.
Comments on PwC Review
1. Quindell would not want PwC to review the business if they had anything to hide.
2. New Chairman, to be appointed, would probably have insisted a PwC or similar review carried out before joining the business.
3. Will provide further independent evidence with regards to the viability and prospects of the business.
4. Investors, suppliers and bankers will welcome an independent view of the business.
5. This review is not a knee jerk reaction as review is already underway.
1. Board confident with regard to the overall cash position.
2. Cash receipts greater than previous quarter but not as large as previously advised.
Guidance for Legal Services cash collection was £750k to £1m per day with £760k achieved per day in Q3. This means the RNS is stating cash receipts will be greater than £760k. Not as great as expected but still significant.
This RNS puts a line in the sand, with regard to the old regime and creates a solid foundation, based on factual information, for the new board, when appointed, to take the business forward.
In my career I have experienced a few leadership changes and the approach has always been the same. Performance of previous regime tempered as much as reasonably possible. This then flatters the performance of the new regime the following year.
I would be surprised if Quindell, knowingly or subconsciously didn’t take the same approach.
Like many I will be glad when this year is behind us and we can look forward to a maturing Quindell business, in 2015, led by a new leadership team delivering exceptional performance.