Banks, Financial

Banking app targets millennials who want help budgeting

Graduate debt, rent and high living costs have made it hard for millennials to save for a house, a pension or even a holiday. For Ollie Purdue, a 23-year-old law graduate, this was reason enough to launch Loot, a banking app targeted at tech-dependent 20-somethings who want help to manage their money and avoid falling […]

Continue Reading


Eurozone inflation climbs to highest since April 2014

A welcome dose of good news before next week’s big European Central Bank meeting. Year on year inflation in the eurozone has climbed to its best rate since April 2014 this month, accelerating to 0.6 per cent from 0.5 per cent on the back of the rising cost of services and the fading effect of […]

Continue Reading


Wealth manager Brewin Dolphin hit by restructuring costs

Profits at wealth manager Brewin Dolphin were hit by restructuring costs as the company continued to shift its focus towards portfolio management. The FTSE 250 company reported pre-tax profits of £50.1m in the year to September 30, down 17.9 per cent from £61m the previous year. Finance director Andrew Westenberger said its 2015 figure was […]

Continue Reading


Travis Perkins and Polymetal to lose out in FTSE 100 reshuffle

Builders’ merchant Travis Perkins and mining company Polymetal face relegation from the FTSE 100 after their recent performances were hit by political events. The share price of Travis Perkins has dropped 29 per cent since the UK voted to leave the EU in June, as economic uncertainty has sparked concerns among some investors about the […]

Continue Reading


RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

Continue Reading

Categorized | Financial, Insurance

Fidelity doubles Quindell stake

Posted on June 30, 2014

Occupy Wall Street Starts May Day Protests Amid Rain in New York©Bloomberg

Fidelity, one of the world’s largest asset managers, has doubled its stake in Quindell, in a vote of confidence for the embattled claims management company.

The move comes as investors and short sellers debate whether Quindell represents a revolutionary new model for the insurance industry, or an overhyped start-up that exposes the risks of London’s junior stock market.

    Fidelity disclosed in stock market filings on Monday that it now owns 10 per cent of Quindell’s shares, making it the company’s second-biggest investor after founder Robert Terry.

    The fund manager started building a stake this year, shortly before a dossier of allegations from a US shortseller triggered a two-thirds fall in the company’s market value.

    Quindell’s shares rose about 10 per cent in Monday trading, valuing Fidelity’s stake at around £90m.

    Short-sellers including Gotham City Research have argued that Quindell’s profit margins cannot be reconciled with those of industry peers or of companies it has acquired.

    However, retail investors have taken to online message boards to defend the company’s prospects vociferously, while Prudential and UBS each own more than 5 per cent of its shares.

    Fidelity’s investment comes from its US-based arm, FMR LLC. Fidelity Worldwide Investment, which manages $275bn in funds from investors outside the US and Canada, said it does not own Quindell shares.

    An increase in US-based investors may come as a relief to Mr Terry, who had to revise plans for a New York investor roadshow and remove details of Quindell’s New York office following Gotham City’s allegations.

    Quindell has substantial operations in North America, employing about 1,500 people in Canada where it acquired a telematics business.

    Fidelity’s stake building in Quindell comes as the company this month heralded a dramatic shift from car insurance to industrial deafness claims.

    “Quindell have migrated our customer base from primarily [road traffic accident] led (80/20) to a mix of [road traffic/employer’s liability/public liability] led by hearing loss claims,” it said in an investor presentation.

    The shift is likely to reduce the company’s cash flow, given that hearing loss claims take longer to process.

    Quindell recently promoted the head of its services business as group chief executive, although it is unclear whether this will reduce the influence of Mr Terry, who owns 10.9 per cent of the company and who continues to have executive responsibilities as chairman.

    The company implemented a 15-to-one share consolidation this month, after issuing billions of shares in part to finance acquisitions of legal, medical and telematics companies. It abandoned an attempt to move to the main London market, following objections from the UK Listing Authority.

    Additional reporting by David Oakley.