This is a Private Investors report about the AGM held on the 2nd September 2015.
Qundell Shrugs off the past.
Quindell has turned over a new leaf. It was revealed that it is to drop its old Quindell leaf logo and company name before the end of this year. Richard Rose stated that the company was even dumping litigation claims against Gotham City Research and has completely severed his connections with the previous directors.
Clearly the company has a strong desire to leave the past behind and move on.
Quindell can no longer be regarded as made from “The Golf Club built on sand” to quote short seller Daniel Yu, who wrongly stated it was worth nothing. It may now be viewed by investors as one of the few cash rich Technology companies with no debt and is standing not on “sand” but on a half-billion pounds pile of cash sitting ready to line shareholders pockets.
The half a billion left after the sale of its legal services division is due to be returned to shareholders following formal legal approval and shortly after its H1 results. The board has been keen to show commitment to shareholders in an unprecedented move. All shareholders are likely to get back more than the current value of the stock. A further payment of at least £50,000,000 as part of the deal will be paid later.
Yesterdays AGM confirmed that there is overwhelming confidence in the new leadership. Private Investors unanimously voted for all the boards’ resolution enabling them to buy large tranches of its own stock at rock bottom prices, potentially forcing up its stock value. Its new CEO, the successful global business leader Indro Mukerjee will shortly divulge his strategy for the company. If his previous successes are anything to go by, it is going to be exceptional and he has the spare cash to do it.
Richard Rose intimated to the press that the accusations of wrongdoing are historical and nothing to do with the new company. Investigations are not likely to have any lasting effect on the company as the SFO seems to only be looking at actions of past individuals. Although the company is aware of potential litigation due to historic issues, nothing as yet has been received by Quindell from lawyers to suggest any action will be taken.
The company has delivered quality services even though the media and negative press fuelled largely by rumours spread by activist short sellers directly targeted the company. The previous directors were unable to keep control during this period and were eventually forced out by shareholders. Recovery has been positive thanks to Richard Rose and team, 1700+ staff and over 1000 loyal investors whose support prevented the company from failing.
Report by: Rod Clements