The share value of legal services provider Quindell has fallen once more after it announced it would not move to a premium stock market listing.
The company’s advisers had been in talks for several months on a move to the Premium List of the main market of the London Stock Exchange.
A Premium Listing means the company is expected to meet the UK’s highest standards of regulation and corporate governance – and as a consequence may enjoy access to cheaper capital.
But in a statement to the stock market this morning, Quindell announced that, because its business has undergone so much change over the past three years it has not been able to satisfy listing rules.
Rob Terry, founder and executive chairman, apologised to shareholders but sounded a positive note about prospects.
‘This is in no way reflective of the success of fundamental performance of the business,’ he said, ‘Quindell’s relationships with customers and partners remain exceptionally positive, with a number of initiatives being undertaken in new territories and relationships in existing territories continuing to expand.’
Quindell said it will continue to explore other options, including listing in North America, but the market responded badly to the news. Within four hours of the announcement its share price on the AIM market was 13.75p, down a fall of 3.75%. This is down from a price of more than 20p at the start of this month and more than 40p in April.
Quindell said in April that it had begun legal action against an investor, Gotham City Research, which it accused of causing a sudden fall in its share price.
In results for the year to 31 December 2013, released on 31 March, Quindell reported pre-tax profits of £107m on turnover of £380.1m. Since then, the company has released a 2014 Q1 trading statement showing gross sales for the group of £162.9m.