Insurance outsourcer undervalued by four to five times, says chief executive Rob Terry
Insurance outsourcer Quindell might consider selling some of its units if its stock market valuation does not improve, chief executive Rob Terry has told the Financial Times.
Speaking to the paper after Quindell released a positive third-quarter trading update yesterday, Terry said: “The company is four to five times undervalued at the moment and if we’ll look to demerge or sell off bits if we don’t see that change.”
Terry did not specify which units could be sold, the paper said.
Yesterday Quindell reported a 115% increase in revenue to £92.1m for the third quarter of 2014.
This helped boost adjusted earnings before interest, tax, depreciation and amortisation by 141% to £83m.
Despite this, Quindell’s share price fell 7.3% in trading yesterday.
Quindell’s share price was hit in April after little-known research firm Gotham City published a scathing attack on the company and Terry.
Quindell called the report “highly defamatory” and said in September that it had won its libel case against the firm.