Ailing Quindell to raise cash through sell-off

LEGAL, insurance and telecoms outsourcing group Quindell is in talks over the disposal of parts of the business to help generate working capital.

In a stock market statement, it said it had entered into exclusivity arrangements with a third party over the sale of an operating division, and was exploring possible transactions relating to a “number of operating businesses”.

Quindell grew rapidly in recent years and acquired five North West businesses.

But its market value crashed last year, losing more than £2bn. The business’s shares were initially attacked by short sellers, then in an attempt to restore confidence senior managers bought shares but it later emerged they had been net sellers.

In the North West Quindell owns: Prescot-based legal costs firm Compass Cost Consultants; Liverpool-based Intelligent Claims Management and law firm Silverbeck Rymer; Blackpool’s AI Claims; and Manchester-based Accident Claim Helpline.

Last month Quindell hired PwC to carry out an independent review.

In the statement the company said: “Cash generation remains a key focus of the group and initiatives to improve the working capital profile of the group continue to be pursued.

“One such initiative was concluded on 31 December 2014. As part of this initiative, Quindell has entered into exclusivity arrangements with a third party in respect of the possible disposal of an operating division of the group.

“In addition to cash generation initiatives that will continue into 2015, the group is in early discussions with a range of parties interested in exploring possible transactions with the group relating to a number of its operating businesses.”