Analyst Views: What did you make of Quindell’s third-quarter financial results?

 
Oliver Smith
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ANDY BRYANT | CENKOS
We have reduced our revenue forecasts to reflect higher provisioning against NIHL [noise induced hearing loss] cases, but the impact on profitability and cash is not material. The shares trade on around two times and the board continues to review a number of options to maximise shareholder value.

ARUN GEORGE | CANACCORD GENUITY
Putting [Quindell Legal Services] on 11 times enterprise value to earnings before interest, taxes, depreciation, and amortisation [EBITDA] would value this profit stream at around £740m. This is around 10 per cent higher than the current market cap.

SOPHIE BLANDFORD | DANIEL STEWART & CO
Operating cash flow for the third quarter was significantly ahead of expectations with £9.4m inflow compared to original guidance of breakeven, and the legal services business division cash collection is around £0.76m per day, ahead of the £0.5m per day previously guided by the company.

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