6th Aug 2014 12:01
LONDON (Alliance News) - Quindell PLC Wednesday said that it has met its key performance indicators for July, including cash conversion, adjusted earnings before interest, tax, depreciation and amortisation, and adjusted earnings per share.
In a short trading update, Quindell also said that its operating cash flow turned positive in July, a month in which it said net funds increased.
The software, consultancy and technology outsourcing provider said that certain contracts are being restructured to ensure an optimum return on cash resources, "but both profit and cash guidance are not dependent on any upside from these initiatives."
The company has come under scrutiny in recent months amid a list of troubles, including its failure to attain a premium listing on the London Stock Exchange, and a wave of short-selling amid a bearish research note published by short-seller Gotham City Research LLC. Gotham said it was unable to reconcile between 42% and 80% of Quindell's profits, and alleged that it suspected they were explained by sales to related parties owned and operated by founder Robert Terry. Quindell has rejected the assertions.
Quindell said it will report interim results for the first six months of 2014 on August 21.
Its shares were Wednesday quoted down 11% at 152.82 pence.
By Samuel Agini; [email protected]; @samuelagini
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