Quindell (LSE: QPP), which last week plummeted 20% after failing to qualify for a premium listing on the London stock exchange, said it will appoint Robert Fielding as new chief executive. Mr Fielding, head of the services division, replaces founder Rob Terry.
Terry, who established Quindell in 2000, personally investing over £12m, will remain as chairman.
The firm, a favourite among retail investors, has made several recent appointments to strengthen the board, including hiring Stephen Joseph from Bank of America Merill Lynch as head of investor relations.
The company intends to recruit additional independent non-executives and has identified a number of suitable candidates, with more announcements forthcoming.
Earnings forecast
Quindell’s board said that it is “confident” earnings per share (EPS) will meet full-year market expectations. From the final quarter of 2014 the group expects to deliver positive operating cash flow, while in the interim Quindell possesses “substantial cash resources and banking facilities available to fund it during this continued period of growth.”
A major area of future growth has been the signing of multiple new telematics contracts. The value of new contracts signed and existing contracts extended — with terms from one to five years in duration — is expected to be in excess of £250m per annum (subject to claims frequencies).
Shares of Quindell improved 3% to 18p during early trade this morning and the shares trade at 5 times forecast earnings.
