Listed legal service provider Quindell has said it has no idea why its share price has dropped in recent weeks.
Quindell's share price has fallen from almost 250p per share in June to less than 150p today, including a fall of almost 40p since the start of this month.
The company made a surprise announcement today to the London Stock Exchange clarifying recent performance.
It said: 'The board of Quindell Plc, a market leading global provider of professional services and digital solutions, notes the recent share price performance and confirms that it knows of no reason for such falls.
‘As originally planned, the company will update the market on or before 15 October 2014 on its trading for the quarter ending 30 September 2014 and the continued positive progress being made by the group in respect of all key performance indicators including cash performance.’
The statement appeared to have had an instant impact, with share value rising by 7.75p since trading opened today – an increase of 6.7%.
One market analyst told the Gazette this type of announcement is relatively rare, but it could be designed to repel speculation about a major change in the management of the company.
‘This is usually designed to address rumours without repeating them and assuring investors there is nothing to them,’ added the analyst.
Earlier this month, Quindell announced it had won a High Court judgment against US analyst Gotham City Research for comments about its financial results, with a damages assessment beginning in November.