Quindell (QPP) may need a Christmas miracle. Shares in the insurance-claims processor slid 5 per cent after it revealed disappointing growth in fourth-quarter cash generation at its professional services division. That could endanger its plans to deliver a second-half operating cash inflow of £30m-£40m - up from £9m in its third quarter - and its target of £100m for the first half of 2015.
The news may further dampen market sentiment, which plunged to an all-time low after three directors took part in a controversial share sale-and-repurchase agreement that led to the departure of founder and chairman Rob Terry. Quindell hopes to put the scandal behind it through an independent review of its accounting and expectations for cash generation. There was a brief glimpse of recovery last week: the group's shares climbed 9 per cent after it issued 101,600 shares as part of its payment for Canada-based insurance software group iter8.
Before resigning as joint broker, Canaccord Genuity forecast full-year EPS of 53.4p, up from 37.7p.
