12th Jan 2015 07:49
LONDON (Alliance News) - Quindell PLC made two appointments to its board on Monday as the insurance outsourcing company said its trading remains robust and it remains in talks for the sale of a still-unnamed operating division.
Quindell said it has named Richard Rose as its non-executive chairman and has hired Jim Sutcliffe as its deputy Chairman and strategy director.
Rose is currently chairman of both Booker Group PLC and AO World PLC, while Sutcliffe is the former chief executive of Old Mutual PLC and the former head of Prudential's UK business. Sutcliffe currently works as the chairman of the Codes and Standards Committee of accounting watchdog the Financial Reporting Council.
In addition to the appointments of Rose and Sutcliffe, Quindell said it has entered into a deal to receive consultancy services from BaxterBruce Ltd. That will see the company work with Marisa Cassoni, the former Royal Mail PLC finance director, and John Tomlins, a former colleague of Sutcliffe, as its consultants. The appointments of all four had been reported in the UK press over the weekend.
Quindell also said its current trading remains "robust", saying its management team is "satisfied" with case volumes, case settlements and digital solutions revenue. It said its earnings and revenue are subject to the independent review of its business which has been undertaken by accountancy PwC and added it would provide guidance following the conclusion of the review.
Operating cash inflow for the second half of 2014 was around GBP13 million, Quindell said, adding cash generation is a key focus for the company and that it is continuing to work on schemes to improve its working capital. The company said the cash inflow figure is before exceptional items but including initiatives that concluded in the period. Quindell said its board remains "comfortable" with its cash position, with gross cash at GBP69 million at the end of December.
The company also said it remains in talks over the sale of an unspecified operating arm. It said it is still in discussions under an exclusivity arrangement with one third party over the sale of the business and is in talks with a range of other parties regarding possible deals relating to a number of its operating businesses. It did not provide any information on the parties involved in the talks, nor the parts of its business on the table.
Quindell also said the independent review of the business by PwC is ongoing and said it would update shareholders when appropriate. At present, it expects the review to be completed by the end of February.
By Sam Unsted; [email protected]; @SamUAtAlliance
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