In the Media

Listed legal firms predict revenue boost

PUBLISHED June 27, 2014

Claims outsourcer Quindell told shareholders at its AGM that it expects to increase turnover this year from £650m to £900m.

The company said this growth will come off the back of £250m-worth of contracts with key legal services providers.

The company confirmed key management changes, with Robert Fielding being named chief executive. Founder Rob Terry remains chairman of the board. Former investment bank managers Stephen Joseph and Michael Bancroft have been recruited as heads of investor relations and corporate development.

The company made no reference to two separate developments in recent weeks which coincided with a fall in its share price of over 50% from a high of around 45p. In April, American investor Gotham City Research published a report on the company, while earlier this month Quindell was denied a stock market premium listing as it had changed too rapidly in the past three years.

Quindell said in a statement: 'The board is confident, in line with expectations, that the group will return to a broadly neutral operating cash position on a quarterly basis in the third quarter of 2014 and deliver strong positive operating cashflow in the final quarter of 2014 and beyond.' By last Thursday the share price had recovered marginally to 18.5p.

Meanwhile, another listed company has said it will seek further expansion after confirming the £15m acquisition of national firm Simpson Millar.

Fairpoint Group, a financial services business specialising in 'financially stressed consumers', finalised a deal for the firm that was first announced in April.

Peter Watson, managing partner at Simpson Millar, explained the deal would provide the firm with extra capital to make further acquisitions in the 'consumer legal services space'.

'Now we are part of an AIM-listed company it gives us an additional weapon as opposed to it just being a pure merger,' he said. He added that the deal will act as a platform for Fairpoint in the legal services market, which is 'ripe for consolidation'.

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