UK 14:37 Monday, 26 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
The good news first. Subject to Court approval then shareholders in Quindell (QPP) will – thanks to the idiocy of the buffoons at Slater & Gordon – almost certainly be getting a special return of 90p per share in time for the New Year. Now for the not so good news. Don’t spend it all at once.
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Comments
DUCK AND DIVE
The SFO aren’t the only potential spanners in the court hearing so I wouldn’t be counting my 90p until the fat lady sings.
But the elephant in the room here is the share consolidation, which is certainly not justified by the stated reason.
They must be doing it in order to raise cash – sooner or later. And yet they claim to have plenty of cash left over to fund future operations and expansion. So 2 + 2 doesn’t equal 4.
Kolo
Watchstone Group ? Is this an in-gag by the new BOD ? Is it because, after changing the name, viewing the share price will be like watching a stone ? Am here til Sat’day, tip yer waitresses.
Juicin Drumroll
Anagrams of Watchstone include Cheats Town, Cash Went To, Cash Nett Ow, Chat We Snot, Scant Eh Wot & my favourite, A Stench Two.
filthy lucre
“ Quindell directors will be on the hook for any shortfall “
Can you explain this statement Tom? Watchstone is a limited company.
I hope that you are not trying to imply that they would be personally liable.
It is highly unlikely that the company will pay out an imprudent sum, which is why it is only 90p at this stage.
Tom Winnifrith
FL
Sure. If directors of a company pay out a dividend which leaves them then unable to meet creditors – which they had good reason to suspect would arise – as the fall due the directors are on the hook.
So hypothetically if QPP pays out then in March -by when cash will be down to £78m it suddenly gets an £80m SFO fine then M Howard et al would then be on the hook for £2m. If YLF racks up another £9m claim after that M Howard et al get out the cheque book again.
Simple. Like you.
T
Daniel Victor
Of course,if the court were to refuse permission then they could blame the court.
John Smith
Good grief. In North America we have these religious people that go door to door trying to find converts. Very heavy in some areas, and they always leave their newsletter behind. It’s almost as though the Quenron “marketing” people just looked at the flyer and said “ya, that will do”.
https://en.wikipedia.org/wiki/The_Watchtower
Rebranding is the least of this disaster’s problems.
filthy lucre
Tom, you are referring to ‘wrongful trading’ when directors trade when they could
‘reasonably foresee’ insolvency.
I do not believe that Michael Howard QC would risk this.
I think you have argued my case rather than your own i.e. that because the
directors COULD be personally liable, that the 90p payout is prudent, and will
enable Watchstone to trade solvently.