Nick "the Moose" Batsford invited back on Tip TV today. We talked about Smith & Nephew, Salix and, of course, Quindell. Click on the link to see today's clip:
http://www.tiptv.co.uk/archives/review-of-the-weekend-financial-press/
On Quindell, I didn't mention in the clip that Slater & Gordon, the Aussie law firm interested in buying Quindell's legal services business, has had its "exclusivity" period extended to February 21, 2015, as I only picked up the story this afternoon.
I also thought I would try to clarify some of the more contentious points from previous articles on this morning's show.
In particular, some readers have been most extremely perplexed about how Slater & Gordon could be willing to pay six times "sustainable revenues" for Quindell's legal services division (see part 2 of the Quindell series - or click on this link http://betaville123.blogspot.co.uk/2015/01/aussie-lawyers-slater-gordon-in.html).
Apologies, but I think things might have got lost in translation on their way to little old Betaville. I have now gone back and re-examined this issue. I understand Slater & Gordon didn't originally indicate it was willing to offer six times "sustainable revenues" late last year but, in actual fact, indicated it was willing to offer six times "sustainable EBITDA", which is also known as earnings before interest, tax, depreciation and amortisation. Quindell's EBITDA, I'm told by sources, is still about £180 million.
I hope that helps clear up that issue.
I urge you to have a listen to Slater & Gordon half year report on the link below - the relevant QPP parts occur around 17 mins in and around 26 mins in - so skip to those if you're pushed for time.
ReplyDeletehttp://www.openbriefing.com.au/OB/Slater---Gordon-Limited/2015/2/10/H1-FY15-Results-Presentation-/1683.aspx